LONDON: Marketing and communications group Incepta is paying up to
pounds 50 million for the second largest hi-tech PR company in the
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
With Citigate Dewe Rogerson and newly acquired Sard Verbinnen, Incepta
has a solid IR operation, but lacked a serious PR presence in the
Cunningham’s revenues of pounds 14.4 million, 200 employees and clients
like Cisco and Sprint made it arguably the market’s hottest
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.