News blog
DM
- BY: Andrew Hore |
- POSTED: 09/04/2009 |
Direct marketing group DM is buying lead generation business PDV for up to £1.13m and raising £1.04m gross from an open offer.
The initial payment is £200,000 and the rest is deferred or based on an earn out. This includes a payment of 50% of any tax savings from utilising tax losses and an earn-out based on a percentage of the turnover of PDV in the period from completion of the acquisition to 31 December 2010.
PDV generates sales leads online and from email campaigns. The company’s database includes 2.1m postal addresses and 1.2m active email addresses. They can generate PDV’s customers up to 100,000 online sales leads each month. The back office activities will be integrated with DM and this will lead to lower costs. PDV should fit well with DLG, which was acquired in November 2008.
Net debt was £8.09m at the end of 2008. A one-for-seven open offer at 5p a share will raise £1m after expenses. Chairman and 70.3% shareholder Adrian Williams is underwriting the open offer for nothing. The open offer share price is a big discount to the market price. At 7.75p a share, DM is valued at £11.3m.
The closing date for the open offer is 27 April 2009.
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