Communisis board accepts £154m acquisition bid by OSG Group
B2B marketing communications business Communisis has agreed a deal valued at approximately £153.8m to be acquired by OSG Group Holdings.
Communisis, which counts clients such as EE, HM Revenue and Customs, Coty and Nestlé on its website, has nine offices across the UK, 12 across Europe, and outposts in New York and Hong Kong also.
Communisis’ CEO, Andy Blundell
Within its interim half-year results released in August, its chief executive Andy Blundell revealed an increase in sales of 9% with a growth in total revenue of £15.1m year-on-year to revenue of £188.6m and a pre-tax profit of £4m.
OSG provides outsourced omnichannel billing, critical communications and payment solutions as well as customer communication and marketing services and boasts around 5,400 clients from industries including financial, utility, education, healthcare and insurance services.
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This will be its 18th acquisition in the last five years, should it proceed.
The acquisition has yet to be presented to Communisis shareholders, with a 75% majority needed to agree in order to be concluded. Should it receive that backing, the deal is scheduled to be finalised by December this year following a court and general meeting held around 28 November.
David Gilbertson, chairman of Communisis, said: "Whilst the Communisis Board believes that the business would have a promising future as an independent listed company, a combination with OSG will provide Communisis with the scale, global presence and digital technology capabilities to ensure it remains at the forefront of its industry and maximises its future potential.
Scott Bernstein, chairman and chief executive officer of OSG, added: "This is a significant development for our business and we believe that uniting Communisis and OSG will be an important step in building one of the largest and most competitive outsourced customer communications platforms serving businesses globally.
"We also look forward to expanding Communisis’ service offering, and offering some of their services to our clients.”
Communisis shareholders will receive 71p for each share under the agreement.