Jul 12, 2017

Acquisition of Circle Research Limited

Next Fifteen Communications Group plc

(“Next 15” or the “Company”)

Acquisition of Circle Research Limited



Next 15, the digital communications group, is pleased to announce the acquisition of the entire issued share capital of Circle Research Limited (“Circle”), a B2B market research consultancy, through its data and insights subsidiary, MIG Global Limited (“MIG”).

Circle was founded by David Willan, Andrew Dalglish and Beth Pearson in 2006.  Andrew and Beth stay as Joint Managing Directors and although David will relinquish his role as Chairman, he will continue to support the business in an advisory capacity. Clients include Vodafone, Google, Mastercard, BSI, SITA, Maersk and Facebook.

The initial consideration for the acquisition is £5.21 million and is comprised of £3.01 million as an up-front payment for the business and £2.20 million for the net assets acquired. Of the total initial consideration, £4.94 million is to be satisfied in cash with the balance to be satisfied by the issue to the vendors of 67,360 new ordinary shares in Next 15.  Further consideration may become payable based on the profits of Circle for the years ending 31 January 2019 and 31 January 2020. Any deferred consideration that becomes payable may be satisfied by cash or up to 25 per cent in new ordinary shares, at the option of Next 15. The acquisition is expected to be earnings-enhancing for the Group in the current financial year.

For the year ended 31 March 2017, Circle reported net revenues of £2.24 million, adjusted profit before tax of £1.01 million and net assets of £2.23 million. Circle is to be acquired debt-free.

Tim Dyson, CEO of Next 15, commented: “Next 15 is committed to building a deep data and insight capability at its core.  Circle is an important step in that strategy, a powerful addition to the MIG data and insights offering and we are excited to have them as a part of the Group.”

Beth Pearson comments: “We’re confident that joining MIG and Next 15 is a positive move for Circle’s clients and team.  MIG share our core values – great work, delighted clients and happy people – and will enhance our offering by bringing cutting-edge research technology and an on-the-ground international presence”.  Andrew Dalglish continues: “As Circle will remain an autonomous brand within MIG it’s really business as usual.”

Application has been made to the London Stock Exchange for the new ordinary shares to be admitted to AIM and it is expected that admission will take place on 13 July 2017. Following the issue and allotment of the new ordinary shares, the Company will have 73,935,504 ordinary shares in issue. No ordinary shares are held in treasury.



Next Fifteen Communications Group plc

Tim Dyson, CEO                                                             +1 415 350 2801


Investec Bank plc

Keith Anderson / Matt Lewis / Dominic Emery                 +44 20 7597 5970

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