Cello Group has continued to expand its health offer with the acquisition of iS Healthcare Dynamic, in a deal worth around £5.8m.
The acquisition to bring the healthcare communications agency into the Cello Health fold will include an initial consideration of around £2.5m, of which £2m will be paid in cash and the rest through 567,376 ordinary shares. Additional payments of up to £3.3m, depending on performance, will also be made until 31 December 2016 through cash and ordinary shares.
Stephen Highley, chairman of Cello Health, commented: "Effective evidence based communications is a key imperative for our clients. iS adds significant strength and expertise in this area and complements Cello's previous acquisitions. The acquisition of iS provides us with a significant global footprint in medical communications."
Isaac Batley and Steve Smith, Founders of iS, said that the partnership with Cello Health and the wider group would add to its offer and give it a larger geographic reach.
The agency reported a gross profit of £3.9m and a pre-tax profit of £1.1m for its last financial year on 31 March.
Meanwhile, at Cello Group’s AGM later today (13 May), Cello Group chairman, Allan Rich will claim that the health division has “experienced a good start to the year” with a “strong” profit growth, and that the group is in line to deliver half year results in excess of last year.