reach4entertainment buys Sold Out ad agency
London-Listed marketing comms firm, reach4entertainment enterprises has bought the company that owns the Sold Out advertising agency, funded in part by an additional share placing.
The proposed Acquisition of Agency Press Limited, which trades as "Sold Out", an independent full-service advertising agency, will see a provisional placing of 250,000,000 new ordinary shares at 1.2 pence per share and the placing will raise gross proceeds for the company of £3 million.
The acquisition also comprises an initial consideration of £3.94 million payable in cash and £250,000 payable in 20,833,333 ordinary shares on completion and additional deferred cash consideration based on the financial performance of Sold Out during the period commencing on 1 June 2017 to 31 December 2021, excluding working capital adjustments.
Deal could be worth uo to £10m
The aggregate of the initial consideration and the deferred consideration is to be capped at £10 million.
"The acquisition will mark a significant milestone for the Group and play a major role in diversifing our client base beyond just theatre”, said Lord Michael Grade, Chairman of R4E.
“Sold Out has built an excellent reputation within the entertainment sector and has a high-quality, long term client base to match.
“It has delivered many successful campaigns across live music, festivals, sports and events, which are all areas where r4e is seeking to move in to. Bringing Sold Out into the Group will enable us to strengthen our entire marketing and advertsing offering."
London-based integrated agency Sold Out, has specialised in arts and entertainment advertising for over 25 years. During this period it has established a strong reputation in its field and built a portfolio of high profile clients, which includes S.J.M. Concerts, AEG Presents, Live Nation and Cirque Du Soleil.
Its services include campaign development, media planning and buying, events, partnerships, design and creative, broadcast and digital media production; all of which will bolster r4e's group offering. In the financial year ended 31 May 2018, Sold Out delivered gross profit of £4.1 million, adjusted EBITDA of £1.7 million and profit before tax of £1.3 million.
reach4entertainment's share were trading 2.8 per cent higher today at 1.28 pence.