UTV Media plc Acquisition of Simply Zesty Limited
UTV Media plc (`UTV' or `The Company') is pleased to announce that it has entered into an agreement to acquire 100% of the issued share capital of Simply Zesty Limited ('Simply Zesty').
The initial consideration is £1.7 million, which is being satisfied from the Company's existing banking facilities, with further tranches of deferred consideration totalling a maximum of approximately £5 million, payable depending upon Simply Zesty's future trading performance. The initial consideration equates to four times the anticipated 2012 EBITDA.
UTV is acquiring the business from Simply Zesty's shareholders, including the founders of the business, Niall Harbison and Lauren Fisher, and the independent market research company, SPA Future Thinking. Following completion the founders will continue to develop Simply Zesty as part of UTV's New Media division.
Simply Zesty's clients include blue chip brands such as Sony, Vodafone, Volkswagen Group, News International and ebookers.com.
Simply Zesty was set up in 2009 and employs 22 staff at its Dublin offices and specialises in providing social media marketing services to assist businesses in creating innovative social media campaigns. Simply Zesty is also building its international presence, which now represents more than 15% of revenues and is growing strongly.
John McCann, Group Chief Executive, UTV Media plc says: "The acquisition of Simply Zesty is part of our strategy to create a diversified multi-media business.
"Simply Zesty is a very successful Irish business with an international presence in the fast-growing social media sector. This acquisition strengthens our existing New Media division and adds further impetus to our multi-media strategy.
"The social media presence of UTV Media's radio and television stations in the UK and Ireland will also be enhanced by the acquisition of Simply Zesty, facilitating far greater integration of media across online and broadcast platforms.
"We welcome to UTV the Simply Zesty team, headed up by CEO Ken Fitzpatrick and founders Niall Harbison and Lauren Fisher." Ken Fitzpatrick, CEO of Simply Zesty, said: "We at Simply Zesty are delighted to be part of the UTV Media Group. Simply Zesty has grown strongly as a social media marketing agency since its foundation, thanks to our great staff and clients - both Irish and International. As part of UTV, we hope to develop our existing brand and business model at an accelerated pace."
Nigel Robbins, Group Commercial Director, UTV Media plc said: "It is the team at Simply Zesty that we are buying into, and the same creative flair and entrepreneurial spirit that got them where they are today will propel Simply Zesty onwards as they build on an impressive domestic and international client base, and integrate across our Radio, TV and New Media divisions.
"Simply Zesty's well-proven social media expertise will ensure that advertising clients across UTV, whose campaigns require the most effective multiplatform spread, will continue to be extremely well served."
UTV Media is one of the most successful media companies in the UK and Ireland incorporating Radio, Television, New Media and Publishing.