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Two More Players for Cello Group
UK-based MR and consulting group Cello has bought a controlling interest in qual researcher Rosenblatt Limited and Internet specialist Digital People Online Limited, for a total maximum consideration of £3m.
Rosenblatt was established in 1995 by Jon Cohen and clients include the BBC and Channel 4. Cello's move secures 75% of the firm for a consideration of £322,000 in cash and the issue of 119,426 new ordinary shares. The remainder is covered by options exercisable in 2009.
The Digital People deal gives Cello 51%, with a put option on the remaining 49%, meaning that Cello can be required to purchase it at any time in the period to March 2012, for a mixture of cash, loan notes and new ordinary shares.
According to Kevin Steeds, Cello Chairman, 'Rosenblatt with its excellent client base, adds more depth to our consumer market research offer whilst Digital People further reinforces our on line capability.'
Cello's stated aim is to build a portfolio of research and consulting businesses to advise global blue chip clients. It already owns MR firms Insight Research Group, Field Management Limited (FML), Leapfrog Research and Planning, and the RS Consulting Group which itself comprises RS Consulting, Consensus and Kudos. Cello has annualised turnover of c.£70m and employs over 500 professional staff.
Cello listed on AIM in November 2004, and application has been made for the new shares to be admitted - this is expected to take place by the end of the week. The Group's home page is at www.cellogroup.co.uk .
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