Acquisition

15 Jun 2007 07:01

Interactive Prospect TargetingHdgs15 June 2007 Press Release 15 June 2007 Interactive Prospect Targeting Holdings Plc ("IPT" or "the Group") Acquisition in France of NP6 IPT (IPH.L), the UK's leading online direct marketing company, is pleased toannounce it has agreed to acquire the entire issued share capital of NP6 SAS fora maximum consideration of €9.95million (approx. £6.73million). IPT has agreed to pay an initial consideration of €5.0million (approx.£3.38million) in cash. This has been funded by a new loan facility of€6.5million, which will cover the initial consideration and costs of thetransaction. In addition IPT has agreed to pay a maximum deferred consideration of€4.95million (approx £3.35million) to the management vendors based on achievingcertain financial targets for the years ended 31 December 2007 and 2008. Thisdeferred consideration will be satisfied by a combination of cash and shares(50:50), with the shares to be issued at the trailing 21 day average marketprice just prior to the time of issue. NP6 is a leader in email broadcasting in France currently delivering over300million email messages each month. The French on-line advertising marketaccounts for 27.2% of total European spend (UK 35.8%) The acquisition is the second by IPT in Europe and together with its Frenchsubsidiary Directinet provides a major foothold in the rapidly expanding Frenchonline marketing sector. It is expected to be earnings neutral in 2007 andearning enhancing in the first full year of ownership. Commenting Lionel Thain, CEO, IPT said: "NP6 is an established and successfulcompany, well known for the quality of its products and the high standard ofservice it provides to its customers. We look forward to being able to offerthese services to all of the Group's customers." NP6, founded in 1999, services over 140 blue chip clients from a wide range ofindustries. These include Cdiscount, ChateauOnline, Fortuneo Direct Finance,Cofinoga and Cultura.com. IPT Group currently provides online direct marketing to over 1,000 clients inthe UK and France. Its clients include American Express; Dell; Littlewoods; TheOpen University; Procter & Gamble; AXA PPP; Tesco; Sky; Dixons; Scottish Power;Sainsbury's; RAC; Alliance & Leicester; Lloyds TSB; Renault, SFR, BNP, Francaisedes Jeux; Dial-a-Phone, Kuoni Travel, ebookers, Universal Group and BCA. NP6 Since the financial year ended 31st December 2002 NP6 has produced strongfinancial growth and operating profitability. Revenue has increased successively for the past three years from €1.17million in2002 to €3.2million for 2006, a compound sales growth of 29% per annum. EBITDAhas grown from €0.26million in 2004 to €1.04million for 2006. NP6 is an ASP based service provider focusing on the delivery of multi-channeldirect marketing services. It is one of the top three French providers ofon-line loyalty initiatives. NP6's clients use its solution to develop, retainand strengthen customer relationships through highly relevant, timely andtargeted communication programs. NP6 operates from a custom built facility in Bordeaux and currently has 26employees. The three founders, Stephane Zittoun, President, Cedric Notario,Network Manager, and Jerome Laplace, CTO, will remain with the enlarged group. Commenting, Mr. Zittoun said: "NP6 and IPT are both market leading companies intheir territories. We are delighted to form part of an enlarged group with ashared strategy of becoming the clear leader in email marketing services inEurope." - Ends - For further information:IPT Holdings plcLionel Thain, Chief Executive Tel: +44 (0) 20 7932 4101 Canaccord AdamsMark Williams, Corporate Finance Tel: +44 (0) 20 7050 6500mark.williams@canaccordadams.com www.canaccordadams.com Media enquiries:AbchurchCharlie Jack/ Hugo Jenkins Tel: +44 (0) 20 7398 7700charlie.jack@abhurch-group.com www.abchurch-group.com For further information on the Company, please see http://www.iptholdings.co.uk This information is provided by RNS The company news service from the London Stock Exchange