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Tangent Buys Insight Agency Snowball
UK digital marketing firm Tangent has acquired customer insight agency Snowball for a maximum consideration of £3.25m in cash and shares.
The payment consists of an initial consideration of £1.07m in cash, and a further maximum of £2.18m in a combination of cash and shares subject to meeting three year EBIT targets.
Snowball, founded in 2003, provides customer management and retention services, and uses research to help clients identify and target new customers. In 2008 it generated adjusted proforma profit before tax of £913k from revenues of £2.23m.
Tangent says the buy will put it in 'a unique position in the market place at a critical time when businesses are seeking clear returns on investment'. The acquisition is expected to be earnings enhancing for Tangent in the first year post acquisition.
Nicholas Green, Joint Chief Executive, said of the deal: 'The most important thing on people's minds today is making sure any money spent is generating a return; and marketing is no exception. The Snowball acquisition will transform Tangent's skills in this area whilst opening up a completely new sales channel to Snowball's own client base. The enlarged business will be uniquely placed to offer clients the range of services linking data, strategy, creative to execution, all underpinned by our proprietary technology platform.' Green added that the business retains £750,000 in cash and is considering further 'strategic opportunities'.
Snowball MD Damian Bentley comments: 'Joining up with a business such as Tangent means that we can take our skills with data into new areas, strengthening our digital credentials and increasing our creative capacity to broaden our offering to both existing and prospective clients.'
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