Insight, which is based in London, is being acquired alongside Target Direct Marketing and Scotland's largest advertising business the Leith Agency. The three firms will then be floated on London's Alternative Investment Market as Cello, which plans further organic and acquisition-led growth.
Insight works across the healthcare and pharmaceutical market research business and includes GlaxoSmithKline, Novartis, AstraZeneca, Shire Pharmaceuticals and Merck, Sharp and Dohme among its clients.
Cello is headed up by chairman Kevin Steeds, former non-executive chairman of another marketing services newcomer Media Square, which last year bought Banc. Steeds is also a founder of Citigate Communications and led its reverse takeover of Incepta Group in 1997, of which he became group finance director.
Steeds is working alongside former WPP Group director Mark Scott, who will be chief executive of Cello. Scott was operations director at WPP for five years until 1998 and he was subsequently executive vice-president of Lighthouse Global Network, which he helped to grow and later sell to Cordiant Group.
Once floated, Cello will control approximately 55% of the issued share capital with the directors of the three agencies holding the rest. Cello said it expects to have a market capitalisation of around £25m once its float has been completed.
According to Steeds: "We are launching Cello based on the acquisition of three high-quality businesses with experienced management teams. They will provide the platform for the growth of Cello. We intend to build each of the three businesses, both organically and by the acquisition of complementary operations, by focusing on their niche areas.
"We are confident that Cello is well placed to create a high-quality marketing services group with significant growth potential."
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