Aegis Group plc (AGS.L) has reached a definitive deal to acquire Beijing Catch Stone Advertising Co. Ltd and the business of Shanghai Catch Stone Culture Media Co., Ltd., for an initial consideration of RMB 550 million or 55.2 million pounds.
The purchase is subject to a four year earn-out structure, from 2013 to 2016 inclusive, with further annual consideration payments being made during this period, dependent on the level of future profit growth achieved. The total consideration for the acquisition by 2016 is projected to be nearly RMB 949.4 million or 95.2 million pounds.
If Catch Stone significantly outperforms current forecasts, the total consideration could be higher with a cap on the maximum amount payable of RMB 1.5 billion or 150.4 million pounds. All consideration payments would be satisfied in cash.
The Catch Stone acquisition is in line with Aegis's strategy of targeting purchases with a specific focus on digital businesses and faster-growing regions. Catch Stone would form a separate network brand for Aegis Media in China, working alongside Aegis's other network brands of Carat, Vizeum, Isobar, iProspect and Posterscope.
Catch Stone is an established digital agency in China.
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by RTT Staff Writer
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