Ebiquity plc Acquires China Media Consulting Group
Ebiquity plc is pleased to announce the acquisition of the entire issued share capital of China Media Consulting Group Limited, the Hong Kong incorporated holding company of the CMCG group ("CMCG" or the "Acquisition"). CMCG is being acquired for an initial cash consideration of HK$20m (approximately £1.6m) which is being satisfied from existing banking facilities. The maximum total consideration is up to HK$85m (approximately £6.7m), payable in cash, depending on the performance of the CMCG business in the five financial years ending 30 April 2017. The Acquisition is expected to be earnings enhancing in the first full financial year.
CMCG is a leading independent media auditing and benchmarking company in China with offices in Shanghai and Beijing. CMCG specialises in helping advertisers establish key media buying performance metrics enabling better media value delivery and continuous performance improvement.
CMCG was established in 2006 and was the first specialist media auditing company to launch in China.
CMCG is being acquired from its founder Alex Abplanalp. Mr Abplanalp will remain as Chief Executive of CMCG and will be Chief Executive of Ebiquity's China business.
CMCG's unaudited revenue for the year ended 31 December 2012 was approximately RMB 13.5m (approximately £1.4m) and it generated an operating profit before highlighted items of approximately RMB 4.0m (approximately £0.4m). CMCG had unaudited net assets of approximately RMB 6.8m (approximately £0.7m) at 31 December 2012 and employs approximately 22 people.
Michael Greenlees, Chief Executive Officer of Ebiquity:
"I am delighted to welcome the CMCG team into the Ebiquity group. Alex Abplanalp and his team have worked with Ebiquity for a number of years and this acquisition underlines our commitment to further strengthen our capabilities in this important market and to grow our business across the Asia Pacific region."