Creston Communications Group has taken a majority share in digital healthcare agency DJM Digital Solutions.
The deal for 75 per cent of the shares into DJM Digital Solutions will initially cost £1.2m, potentially rising to around £3m by 2015, depending on average profit. The remaining 25 per cent of the shares could be bought for £2.4m from 2018.
The group has explained that the acquisition is in line with its strategy as it aims to "establish itself as one of the leeaders" in digital marketing, while growing its health division, which has previously worked with DJM.
The Surrey agency's founder Dominic Marchant, will remain as managing director.
Don Elgie, Group CEO of Creston, commented: "The healthcare industry has historically been very cautious about the use of digital marketing in light of the tight regulatory environment in which it operates. However, the rapid uptake of smartphones and tablets among physicians is revolutionising work practices and the pharmaceutical industry is having to adapt its marketing communications accordingly.
"In the UK, in an industry where digital has been adopted quite late compared to other business sectors, DJM is one of the largest and most respected independent digital healthcare agencies. Working with our other health companies, as part of Creston Health, we are confident that DJM will facilitate the continued growth of the division as digital becomes an ever-more significant element of our clients' and prospective clients' briefs."
DJM reported revenues of of £0.6 million earlier this year and a pre-tax profit of £0.2 million, with assets worth £0.5m.