Managing partners Matthew Bayfield and Steve Mattey founded Tree in 2001. They own the remaining 60%, for which Cagney will pay them £394,941 and 5.49m ordinary Cagney shares on April 30. They are also in line for further performance-related payments.
If Cagney does not pay the initial amount there is a provision that the founders are able to hold on to their 60%. In addition, between May 1 and August 1 the founders have the right to acquire Cagney's 40% for the same amount Cagney paid to AIS. After August 1, Cagney has the right to hold the 40% or sell it to a third party.
Cagney said it planned to expand the range of services and products at Tree, which has an existing client list that includes Barnados, Skoda, Victim Support and Volkswagen Commercial Vehicles. Its unaudited 2006 accounts show it earned revenues of £1.8m and profits before interest and tax of £200,000.
Paul Simons, chief executive of Cagney, said: "The addition of Tree to the group significantly strengthens Cagney's offering to clients. The market environment continues to move towards a greater reliance on quantified consumer intelligence and insight.
"Tree is at the cutting edge of consumer insight, helping clients maximise their return on marketing investment."
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