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Aegis completes £95m acquisition of MediaVest Manchester

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By The Drum Team, Editorial

July 11, 2011 | 3 min read

As had been reported by The Drum, the speculated acquisition of MediaVest Manchester by Aegis has been completed, which could be worth around £95m.

The acquisition is of an initial 75% share capital in the media buyer, with a remaining 25% of the share of capital subject to a put and call option arrangement which will be exercisable from 2016.

An initial amount of £27m has been paid, with a maximum of £95m set to be spent through the agency’s share capital, should the earn-out criteria be met.

Andy Jeal and Dave Lucas owned approximately 77% of the agency alongside other employee minority shareholders.

19.9% was earlier reacquired by Lucas, Jeal who will continue as managing partners of MediaVest Manchester from Startcom MediaVest Group, which has relinquished its license to the MediaVest name.

The Drum understands that the management of the agency will remain unchanged despite the new ownership.

The agency currently works with clients such as JD Williams, Holland and Barrett and Thomas Cooks.

As a result of the acquisition, MediaVest Manchester will immediately become part of Aegis Media’s Carat and iProspect brand names.

Jerry Buhlmann, chief executive of Aegis said: "Our strategic priority at Aegis Media is to continue to develop and implement best in class digital and media solutions for our clients, and we have made clear that we would be looking at strategic acquisitions that provide scale, infill and innovation. This acquisition does just that, by improving our market share in the UK and further increasing our performance marketing and digital capabilities."

Rob Horler, CEO, Aegis Media, UK: "I am delighted that we have been able to acquire MediaVest (Manchester) Ltd. The acquisition will boost our position in the market but more importantly it is a business that will help accelerate the development of both Carat and iProspect through its market leading regional capabilities and specialist digital expertise. David, Andy and the whole MediaVest Manchester team have built a great business over the past few years and they will be a great addition to our Group."

Andy Jeal, managing partner of MediaVest Manchester said: "We are really excited about becoming part of Aegis Media, and operating as brands with the strength of Carat and iProspect. As part of Aegis Media, we feel perfectly placed to continue to grow our business through planning and implementing market leading, media-neutral solutions for our clients which deliver demonstrable return on investment."

The agency, which currently employs 216 people, was founded in 1994 and will now operate as Carat.

In its last financial year, ending 28 February 2011 , the pre-tax profit of the agency was £7.4 million and the value of the gross assets at that time was £49.6 million.

In relation to Carat's other Manchester based media agency Feather Brooksbank, The Drum was told by a spokesperson for the company that the two agencies would now be 'working together'.

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