Morar Buys Majority Stake in HPI Research

In the UK, digital marcoms group Next Fifteen Communications has acquired an 85% stake in London-based brand and communication specialist HPI Research through its data and insights subsidiary Morar. The deal will be met with an initial consideration of just under £1.3m.

HPI, which was established in 1978 and acquired by its management from communications group Interpublic in 2006, provides a variety of services from brand tracking, strategic and creative development, NPD and brand architecture, through to future gazing and ethnography. It also offers proprietary techniques such as Brandalysis, which uses projective techniques and sensory stimuli to define a brand's DNA; and Co-Search, a co-creation tool for generating new products and services. Based above Smithfield Market, the firm is also home to licensed trade and drinks market division Cardinal; and EnvirosellUK, a division focused on shopper capabilities and environmental research and consulting.

For the year ended 30th September 2016, HPI had revenues of £3.4m, and adjusted EBITDA of £230k. Morar's initial consideration comprises £800k for the net assets acquired on completion, and £482k as an up-front payment for the business. The remaining 15% stake in HPI will be acquired by Morar in June 2018, for an amount dependent on HPI's operating profit for the financial year ending 31st January 2018.

HPI and Cardinal will now become part of Next15's newly formed data and insights group, sitting alongside Morar and recently launched data collection agency Viga. Juliet Strachan remains Managing Partner of HPI, while Martin Dinkele will continue to head up Cardinal. Tim Dyson (pictured), CEO of Next 15, comments: 'This acquisition is in line with Next 15's strategy of growing its data revenue to 20% of group revenue in the next five years. HPI brings both talent and a history of high quality market research. We believe that a combination of HPI's team and established client base with Morar's technology platform will create a better solution for HPI's customers and enable Morar to reach new customer segments'.

Web sites: www.next15.com , www.morarconsulting.com and www.hpiresearch.com .