Jaywing, a UK-based agency specialising in the application of data science, has agreed to acquire Bloom Media (UK), a digital marketing agency based in Leeds.
Initial consideration of £2.41 million is payable on a cash and debt free basis, and will be financed from funds raised through a placing with new and existing investors and from new bank debt of £1.0 million.
Additional earn-out consideration of up to £5.75 million is payable subject to performance criteria, over a two year period ending March 2018 and will be satisfied through the company's own cash resources and debt.
Jaywing will apply part of the placing proceeds towards investment in a newly formed joint-venture over the next two years.
The joint venture will be responsible for developing the enlarged Company's data product set, supported by Bloom's existing management team.
The acquisition is expected to be earnings enhancing within 12 months from completion.
The placing will raise £3 million before expenses through the issue of 10,000,000 new ordinary shares at 30p per share.