- Next Fifteen Communications Group (NFC) has announced the acquisition of the entire issued share capital of Twogether Creative Limited.

The initial consideration for the acquisition is approximately GBP6.6 million, of which approximately GBP4.0 million is to be satisfied in cash, with the balance to be satisfied by the issue to the vendors of 1,160,136 new ordinary shares in NFC.

Approximately GBP0.5m of loans owing to Twogether's shareholders will be repaid on completion using Twogether's cash reserves, resulting in the business being debt-free.

Further consideration may become payable based on the average profits of Twogether for the years ending 31 January 2018, 2019, 2020 and 2021. Any deferred consideration that becomes payable may be satisfied by cash or up to 25 per cent in new ordinary shares, at the option of NFC. The acquisition is expected to be earnings-enhancing for the Group in the current financial year.

Clients of Twogether include multinational technology groups such as Brocade, Intuit, Symantec, Veritas, Lenovo and Zebra Technologies. It also has a proprietary Software as a Service (SaaS) offering in, which is used for channel marketing.

For the year ended 30 June 2015, Twogether reported net revenues of GBP4.6 million, adjusted profit before tax of GBP0.9million and net liabilities of GBP0.2m and has performed strongly in the financial year to date. Although Twogether is based in the UK, approximately 40% of its revenues came from US-based clients in its 2015 financial year.

At 12:21pm: [LON:NFC] Next Fifteen Communications Group PLC share price was 0p at 233.5p

Story provided by