INTERNATIONAL: Incepta invests in US high-tech operation

LONDON: Marketing and communications group Incepta is paying up to pounds 50 million for the second largest hi-tech PR company in the US.

LONDON: Marketing and communications group Incepta is paying up to

pounds 50 million for the second largest hi-tech PR company in the

US.



The UK-based Incepta Group will pay out an initial pounds 30 million for

Cunningham Communication and a further pounds 20 million depending on

the future of the company.



For both parties, the multi-million deal looks set to be an enormous

boost.



With Citigate Dewe Rogerson and newly acquired Sard Verbinnen, Incepta

has a solid IR operation, but lacked a serious PR presence in the

US.



Cunningham’s revenues of pounds 14.4 million, 200 employees and clients

like Cisco and Sprint made it arguably the market’s hottest

property.



For Cunningham, the deal is equally appealing: it gets access to

Incepta’s global network of 48 offices and capital for future

acquisitions. Importantly, founder Andy Cunningham will be able to

define and develop a new worldwide brand, Citigate Cunningham.



’I wanted someone who wanted me to build a global brand,’ Cunningham

said. ’That’s why we didn’t sell to H&K or anyone else like that.’

Cunningham and president/ chief operating officer, Joe Hamilton, will

serve on the Citigate board.



If Cunningham meets profit targets over the next three years, Incepta

will hand over the remaining pounds 20 million.



Both Incepta CEO David Wright and Cunningham expressed confidence that

the firm will generate pounds 2.5 million in profits this year.

Investors also cheered the deal, as Incepta’s stock has risen on the

London Stock Exchange since the announcement.



The deal does not include Cunningham’s InMomentum group, which was spun

off earlier this year.



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