26th June 2006
Cello invests in brand consulting operation.
Cello Group plc (‘Cello’) (AIM: CLL), the research and data led marketing services group, is strengthening its brand consulting operating platform with the acquisition of Farm Communications Limited (‘Farm’) for a total maximum consideration of £2,332,000 in a mixture of cash and new ordinary shares. The initial consideration consists of up to £700,000, of which up to £300,000 will be paid in cash and the balance satisfied by the issue of 326,532 new ordinary shares.
In addition, there are further performance related payments in respect of the period to 31 December 2007 of up to £1,632,000 payable £408,000 in cash and the balance in new ordinary shares.
Farm will be merged with Leith London. Its clients include Smile, SACLA, Smart and Travelocity. They have also recently been admitted to the COI roster. For the year end 31 December 2005, Farm achieved £1.6m of gross profit, and at December 31 had net assets of £87,000.
Application has been made to the London Stock Exchange for the new shares to be admitted to AIM and it is expected that admission will take place by 30 June 2006.