Online advertising company Deal Group Media is selling 51% of its more mature UK business in order to concentrate on its faster growing Asian operations.
The buyer is Isco Technical Services, which is run by DGM’s chief technology officer Carl Davis. Isco will pay £1m upfront and £500,000 by the end of January 2008.
Isco will provide IT services to DGM for a monthly fee and also rent part of its offices for at least 18 months. Isco will also receive accountancy services for a monthly fee.
DGM believes it can return to profit in 2008 and be generating cash by the summer. Australia is increasing its sales and South Africa has just moved into profit. There are also newer businesses in Singapore and India.
The shares rose 0.25p to 1.5p.
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