Next 15, a digital communications group, has acquired an 85% stake in HPI Research Limited, a market research agency based in London, through its data and insights subsidiary, Morar Consulting Limited.
Next Fifteen Communications Group are paying £1,282,000 in cash, comprising £800,000 for the net assets acquired on completion and £482,000 as an up-front payment for the business. The remaining 15% stake in HPI will be acquired by Morar in June 2018, with the consideration based on HPI’s operating profit for the financial year ending 31 January 2018.
For the year ended 30 September 2016, HPI had revenues of £3,405,000, adjusted EBITDA of £230,000 and net current assets of £1,201,000. HPI’s largest clients include Sainsbury’s, Argos and Heineken.
Tim Dyson, CEO of Next 15, commented:
“This acquisition is in line with Next 15’s strategy of growing its data revenue to 20 per cent of Group revenue in the next five years. HPI brings both talent and a history of high quality market research.”