Cello acquires US agency MedErgy
Marketing group Cello has acquired US healthcare communications company MedErgy.
The initial deal for the Pennsylvanian agency, including payments to key members of staff, will be $5.5 million in cash as well as 5,804,049 new Cello ordinary shares.
Based in Pennsylvania, MedErgy was formed by its chief executive, Julia Ralston in 2002, offering communications consultation services to healthcare companies in the US.
Mark Scott, CEO of Cello, commented: “MedErgy will accelerate Cello’s expansion in healthcare research and communications and increase our exposure to international client briefs. The fit with our existing business is excellent and the growth prospects for the combined Group are exciting.”
It is understood Cello is aiming to grow its offering towards medical services companies, which prompted the acquisition, with further US acquisitions thought to be possible.
Meanwhile, the Cello Group has reported a headline operating profit for 2010 of £7.3 million, an increase of 21 per cent on 2009.
The Group has reported an operating profit of £5.7 million, and has claimed to have had a ‘good start’ to 2011.
Mark Scott, added: “2010 saw a strong performance, particularly in our research and consultancy operation. Our focus on the healthcare market and our increasingly global client base have resulted in robust profit growth. We plan to continue to internationalise our operating base in 2011 and strengthen our focus on our core client sectors. The acquisition of MedErgy, announced today, will accelerate this process.”