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
'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
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.