Porta Communications PLC has taken a majority stake in Twenty 20 Media Vision in a deal that values the company at up to £1.9 million.
Twenty 20 Media Vision is a full service media planning and buying agency based in Tunbridge Wells. It was founded just two years ago. Twenty 20 Media Vision has a client base from a range of sectors, such as entertainment, luxury, retail and healthcare; including Carpetright, Fat Face, Raymond Weil Watches, Wren Kitchens and Gieves and Hawkes.
Porta Communications has taken a 90% share. The maximum consideration payable will be linked to profits generated by Twenty 20 Media Vision over the next full year. The initial consideration of £370,000 will paid £40,000 in cash and through the issue of 3,300,000 new ordinary shares of 10p each. Additionally, deferred consideration of up to £1,530,000 will be payable subject to Twenty 20 Media Vision generating profits before tax for the year to 30 September 2013 of in excess of £500,000. The maximum deferred consideration will be paid as up to £300,000 in cash and the balance in new shares. If profits fall below £500,000 then the consideration will be scaled back on the following basis: for every £50,000 shortfall in profit, the consideration will be reduced by £190,000 in the same cash to shares ratio as the maximum deferred consideration (being approximately 20 : 80), by such a factor until only the initial consideration is payable.
Porta Chief Executive, David Wright stated that: “Twenty 20 represents another key element in the Porta business plan. It not only represents the first significant development by Porta in the advertising space, but also provides the Group both the management expertise and market presence to further develop its plans for the sector. We are looking to build on this strong base with further acquisitions in the near future.”
UK, London & Tunbridge Wells, Kent