St Ives plc has acquired Branded3 Search Ltd, a search engine optimisation and digital marketing agency.
Established in 2003, Branded3 employs approximately 50 staff, with offices in central London and Leeds. It has a strong B2C and B2B client base across a range of vertical sectors that includes entertainment, finance, travel and other sectors.
In the financial year ended 31 January 2013, Branded3 generated adjusted EBITDA of £1.7 million on revenue of £4.1million; gross assets were £3.0million.
St Ives is paying £10.7million, £8.6 million in cash and approximately 1.4 million of newly issued St Ives shares. Further consideration of up to £14.3 million may be payable (to be
satisfied approximately 75% in cash and 25% in shares) dependent on incremental financial performance for the years ending 31 January 2014, 2015 and 2016.
Branded3 will operate as a subsidiary of St Ives and will continue to be managed from its current locations by its existing management team, which includes Vin Chinnaraja and Patrick Altoft, the vendors and co-founders of the business.
Patrick Martell, Chief Executive of St Ives, said, “With the acquisition of Branded3 we are adding significant depth to our digital offering and further enhancing the range of marketing services we can provide for our existing and prospective clients. Our combination of insight led innovation and trusted execution across digital and physical media creates
a unique integrated offering in the market, which this acquisition complements well. I am delighted to welcome the Branded3 team to the Group and look forward
to supporting their growth plans.”
- St Ives plc sells magazine businesses March 15, 2011
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