London-based PCI is one of Europe's leading live communications specialists. PCI designs and produces live events, exhibitions, videos for clients including Microsoft, Toyota, B&Q, BT, Marks & Spencer, Kellogg's and Ford. The firm employs 60 staff.
The acquisition further enhances Cordiant's operations in the events area. It already owns HP:ICM, the live communications agency in London, and Avid in Chicago. PCI will be merged with HP:ICM to form a new company, which will be headed by PCI's Richard Bamford, who becomes CEO.
Michael Bungey, CEO of Cordiant, said, "This acquisition further demonstrates our commitment to our strategy of acquiring leading brands and consolidating our strengths in marketing communications. Face-to-face marketing represents an exciting growth opportunity as clients employ new methods with which to build their brands."
The initial consideration will be satisfied by the issue of 7,675,052 new Cordiant shares of which 75% will be restricted from sale for a period of one year from completion. Maximum further consideration of £31.2m may be payable in new Cordiant shares depending on the financial performance of PCI and HP:ICM to December 2004.
PCI had revenues of £5m and audited profit before tax of £1.4m for the year ended 30 April 2001, and net assets of £0.6m as at 30 April 2001.
Prior to its acquisition by Cordiant, PCI acquired Ultimate Events, a UK-based live communications agency.
July is has proved to be a busy period for Cordiant. Two week ago, it agreed to combine its media-buying operations with Publicis in a deal that sees Optimedia and Zenith Media come together to create one of the world's largest media-buying networks.