The Communications Agency / Communisis plc
Cavendish Corporate Finance, the UK’s leading sell-side mid-market M&A advisory firm, is delighted to have advised the shareholders of The Communications Agency (TCA), the brand response and customer relationship marketing agency, on the £8m sale of the company to Communisis plc, the personalised customer communication services provider.
TCA is a long-established, award-winning agency with broad capabilities and experience across all media channels including TV, experiential and digital. TCA’s longstanding clients include high street retailers, financial institutions and major charities such as Cancer Research UK. Its 42 employees will all transfer to Communisis under the deal, including its founder and chairman, Robert Prevezer, and chief executive, Adam Leigh, who will take on senior executive roles in the company.
Communisis’ communication services are principally delivered through print and direct mailing, so the transaction offers considerable scope for growth and revenue synergies with Communisis’ existing client portfolio, along with the cross-selling of other marketing services in social media, video, digital development and content marketing.
In the year to 31 October 2013, TCA generated adjusted EBITDA of £0.45m on a turnover of £4m (net of recharged costs). The consideration of £8m will be satisfied in cash of £6.55m and new shares in Communisis of £1.45m. , and represents a significant EBITDA multiple.
Andy Blundell, Chief Executive of Communisis plc commented:
“TCA is a long-established, award-winning and well-respected agency that brings an impressive range of new capabilities and experience to the Group’s higher-margin design segment. It will sit at the heart of Communisis’ creative offering. The growth prospects are excellent.”
Linda Sullivan, Partner – Media and Digital at Cavendish who led the transaction, commented:
“This was a great result for our clients and is a cornerstone acquisition for Communisis’ new design division. The marketing and communications sector is buoyant and there is an interesting universe of buyers for creative, digital agencies, as this transaction illustrates. We aim to be as creative as our clients in thinking outside the box and delivering the best results.”
Robert Prevezer, Executive Chairman and founder of TCA commented:
“ Linda Sullivan, the Cavendish Media and Digital partner, and James Ellis were excellent. They totally understand our sector and were with us every step of the way, achieving a great result for the shareholders and a very good home for our business going forward. I highly recommend them.
“The Cavendish team of Jon, Chris, Chirag and Soben steered the process from start to finish and were instrumental in bringing this transaction to a successful conclusion with the right partner in the form of Naviga. The sale of Miles 33 to Naviga marked a successful exit for the financial investors and provides management with a larger platform to grow the business.”
“When selling The Farm, the best decision we took was to choose to work with Linda and her team at Cavendish. They delivered an excellent deal, were a delight to work with, are thoroughly professional, excellent value for money and will remain firm friends. No one could have got us a better outcome.”
“It was a pleasure to work with the Cavendish team, led by Linda Sullivan. As well as displaying a deep understanding of our sector, they also made every effort to get under the skin of our business, which ensured that we were fully aligned from start to finish. In particular, I was hugely impressed by the way in which Linda conducted the process with a calm authority and professionalism throughout. She is a class act.
We are delighted with the outcome and feel that we have found the perfect partner for Dare in the Oliver Group. I would have no hesitation in recommending Cavendish to my peers in the industry.”
…Cavendish showed an intimate knowledge of the sale process from start to finish. They demonstrated technical excellence in a complex transaction and I had full confidence in their abilities at all times. I am delighted that the management team have found a partner that will assist with the continued development of WTG.
Linda Sullivan, James Ellis and the Cavendish team were excellent throughout the process and achieved a very positive result for the management and shareholders. I highly recommend them. Rex has an exciting future as part of Shutterstock, the NYSE quoted international company.
Cavendish ran a very tight process and generated real bidding excitement. Opta is seen by Perform as a the missing piece in their content jigsaw.
It was a pleasure to work with the Cavendish team, led by Linda Sullivan. As well as displaying a deep understanding of our sector, they also made every effort to get under the skin of our business, which ensured that we were fully aligned from start to finish. In particular, I was hugely impressed by the way in which Linda conducted the process with a calm authority and professionalism throughout. She is a class act.
We are delighted with the outcome and feel that we have found the perfect partner for Dare in the Oliver Group. I would have no hesitation in recommending Cavendish to my peers in the industry.
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