Funding for the acquisition was aided by the purchase of 11.5 million shares, worth around £5 million, by WPP North Atlantic, a subsidiary of WPP. Chime will pay £14.5 million up front and £15.5 million later, dependent on the agency meeting profit targets.
Half of the total will be paid by the creation of 25.5 million shares that the partners cannot sell for 18 months. The four founding partners each own a 20 per cent stake in the company and will receive around £6 million each, while 19 employees share the final 20 per cent.
The deal echoes the February shares-and-cash buyout of Delaney Lund Knox Warren & Partners by Creston Plc, which saw Mark Lund and Greg Delaney collect £6 million, while the rest of the partners took £3 million each.
VCCP, whose O2 client accounts for £40 million of its £73 million billings, was formed in 2002. It will now take over management control of some of Chime's marketing services businesses, including Heresy.
- Perspective, page 19.
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