Midnight Communications is snapped up by BV Group

Brighton and London-based agency Midnight Communications has been

purchased by marketing communications holding company the BV Group in a

deal worth up to £3.5m over the next four years.



The sale, which sees the AIM-listed firm acquire 100 per cent of the

equity in the agency, will cost an initial £750,000, predominantly

in loan notes. A further £250,000 initial deferred payment will be

made should Midnight's pre-tax profits up to 31 December 2001 exceed

£300,000.



'It's good news for our staff who will have access to more resources,

and it's good news for our clients who will have access to a wider range

of services,' said Midnight founder and MD Caraline Brown, who owned 90

per cent of the agency. Brown will take up a place on the BV board,

while a member of the plc's staff will join the Midnight board.



Brown insisted the decision to seek out an acquisition partner was

fuelled by a desire to expand the agency: 'I want the brand to grow and

offer more things to our clients. I have been looking for some time to

find partner firms to provide advertising and direct marketing services

to our clients.'



She added that the agency would continue to operate as normal under its

own brand, and that there would be no job losses following the

acquisition.



Brown said that the agency, which was named Best Small Consultancy in

the PRWeek Awards 2000, would now be looking to expand with a view to

becoming a Top 5 PR agency in the next five years.



The agency boasts an array of predominantly technology clients,

including Adobe Systems, Epic Records and UK Smart.



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