Hyperlaunch DMG

7 Becomes 9

03-10-2008

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Following its recent announcement that the business is on track to make its full year profit forecast to March 2009, Digital Marketing Group has completed the acquisition of Cybercom, a Tier 1 supplier of IBM’s e-commerce infrastructure, and Gasbox, a direct marketing company specialising in voice solutions.

Cybercom has been bought for an initial consideration of £6.0m and a deferred performance related element of £3m. Assuming that all performance targets are met this equates to a PBT multiple of 5.75x 2010.

Gasbox has been bought for an initial consideration of £1.0m with a further maximum payment of £9.0m subject to meeting certain profit targets. This translates to 4.6x 2010 PBT multiple assuming that all performance targets are met.

On a stand-alone basis the acquisitions will be earnings enhancing by 11% for the year to March 2009 and above 15% for 2010.

The two companies will bring substantial strategic and operational benefits to the Group:

Cybercom will allow DMG to tap directly into e-commerce which represents a significant growth opportunity.

Gasbox enhances DMG’s existing presence in the integration of telemarketing services and online marketing solutions.

www.digitalmarketinggroup.co.uk