Hyperlaunch DMG

DMG adds another company to the group

07-10-2008

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Digital Marketing Group Acquires Prodant Ltd

Digital Marketing Group (AIM: DIGI), the digital direct marketing specialist, announces that its subsidiary, Alphanumeric Limited, is acquiring 100% of the entire issued share capital of Prodant Limited. An initial consideration of £165,000 in cash may increase up to a maximum consideration of £750,000 dependent on Prodant achieving certain profit targets over the six month and the 18 month periods following the acquisition. Prodant will be integrated into Alphanumeric‘s specialist data services business, Jaywing.

Established in 2003, Prodant offers a range of training and development programmes for call centres in the UK. These include performance audits, training outsourcing and services in the fields of collections and recoveries, sales and customer service. Prodant also offers wider call centre consultancy. Prodant’s current and prospective clients are drawn from a variety of sectors including financial services, utilities, insurance and healthcare and it reported gross profit for the year ended 30 June 2008 of £603,000 and EBITDA of £121,000.

The Group believes there are significant opportunities for synergies and cross-selling with Prodant, and Jaywing plans to enhance the data and analytics component of the Prodant offering in order to assist call centres in making better use of their customer information to increase productivity and reduce costs. An area of specific current interest to Jaywing is Collections and Recoveries where a joint product with Prodant has already been identified.

The acquisition will be funded via a combination of existing cash resources and bank facilities. Adjustments to the consideration are in place in relation to agreed minimum net asset balance sheet positions retained by the businesses.

Commenting on the acquisition, Andy Gardner, Jaywing’s Managing Director, said: "I am delighted to announce the acquisition of Prodant. Jaywing’s objective has always been to develop the intelligent use of data at all points of customer contact. Through the acquisition and integration of Prodant we will be able to extend Jaywing’s comprehensive and expert offering, particularly in credit risk, where Prodant has a successful track record. With Jaywing and Prodant already sharing some clients in the Financial Services and Utilities sector we are confident this will provide an excellent platform for a smooth integration and successful future product development."