Be Heard Group buys content marketing agency for up to £10m

Be Heard Group buys content marketing agency for up to £10m. The £4.5m sale price represents 5.2 times Kameleon’s adjusted earnings before tax, depreciation, depreciation and amortisation (EBITDA) for 2016. About £3m will be paid over three years to 2018, subject to to revenue reaching 110% of last years level. An additional ‘stretch’ payment will be paid if Kamelon makes at least £8.1m worth of sales and EBITDA of £1.62m, with the total deal capped at £10m. Both the initial and deferred considerations will be paid with 65% in cash and 35% in shares, while any ‘stretch’ consideration will be made with 50% in cash and 50% in shares. Peter Scott, executive chairman of Be Heard, said: "Digital content is a natural next step for Be Heard as we develop our range of services across the digital ecosystem and Kameleon is precisely the sort of agency we want - fast-growing, at the heart of digital transformation and ready to work with us to take their business to the next level.” He added that the company had a “very healthy pipeline” of future potential acquisitions. It had already partnered with the company’s existing business - digital media planning agency Agenda21, buying agency UX, and design and build specialist MMT Digital. For the year ended 31 December 2015 Kameleon had adjusted EBITDA of £530,000 on revenue of £2.43m . In 2016, it is expected to generate revenue of £3.89m, which is 60% annual growth, with adjusted EBITDA of £785,000. Shares in Be Heard Group were up 7.65% to 3.66p at 1007 GMT.

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Marketing firm Be Heard Group has bought content marketing agency Kameleon Worldwide for an initial £4.05m that could rise to £10m, in a bid to deliver a more cost-efficient service to clients.

The AIM-listed company said the acquisition, which is expected to be materially earnings enhancing in the first full year of ownership,…