Cello said that it is acquiring RS Consulting for maximum consideration of up to 拢4.75m in cash, loan notes and new ordinary shares.
The company will initially pay RS Consulting's owners 拢2.4m -- 拢1.2m in cash and the remainder in 987,655 new shares. The outstanding 拢2.35m will be paid once RS Consulting meets certain financial targets.
Kevin Steeds, chairman of Cello, said: "RS Consulting is a long-established and high-quality business that will complement our specialist healthcare and consumer research and planning consultancies. The addition of RS Consulting further reinforces our focus on the high value-added business advisory and consulting end of the market."
RS Consulting was formed in 1984 by Bryan Atkin and John Leston. It is predominantly a business-to-business market research agency and has a variety of UK and international clients, including HP, Xerox, Sony, FedEx, the Department of Work and Pensions, Axa and Yell. For the year to September 30 2004, it turned over 拢9.6m and achieved a gross profit of 拢3.8m.
Last month, Cello bought consumer market research and planning agency Leapfrog for 拢6m. The Cello Group consists of Insight, a healthcare market research company, Scottish advertising agency The Leith, Target Direct, and Edinburgh-based DM agency Navigator Responsive Advertising.
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