Recent Deal

Cello Makes Financial Service Acquisition

In 2007, Market research and consulting group, Cello Group plc, acquired a controlling interest in Hill Murray Group Ltd, the holding company of cchm:ping Ltd, a specialist financial services marketing agency, with options to acquire the balance of the shares. The total maximum consideration for the acquisition of 100% of Hill Murray Group Limited is approximately £5.3m in cash, loan and new ordinary shares.

Cello has acquired just over 76% of cchm:ping for an initial consideration of approximately £0.95m of which £0.76m is payable in cash and the balance satisfied by the issue of 127,307 new ordinary shares. The remaining 24% is subject to put and call options exercisable in the period 2008 to 2011 with the option prices being determined by the financial performance of cchm:ping during the period to 31 December 2010.

Established in 1997, cchm:ping has a number of blue chip financial services clients including Aegon, Bristol & West Mortgages, Legal & General, Nationwide, Lloyds TSC & Scottish Life. For the year to 30 September 2006, cchm:ping had an audited turnover of £8m, gross profits of £5.6m and delivered a loss before tax of £0.3m. Net assets as at 30 September 2006 were £0.7m including cash of £0.6m.

Commenting on the acquisition, Cello chairman Kevin Steeds said: “cchm:ping is a highly regarded specialist financial services marketing agency with an excellent client base. As part of our Response division, based in London, it will complement our existing business and give us considerably more depth in the financial services sector vertical.”

Marriott Harrison acted for the purchaser Cello Group Plc.