Marketing services provider Hasgroveis selling its digital marketing firm Amaze to printer St Ives for an initial £15.3m.
The share price rose 15p to 77.5p on the back of this news. That values Hasgrove at £18.2m.
A further £9.7m could become payable depending on the achievement of profit targets in 2013. In 2012, Amaze made an operating profit of £1.7m on revenues of £17.3m. Amaze has been making the majority of Hasgrove’s operating profit.
Hasgrove argues that Amaze needs additional investment, which its new owner can provide. Hasgrove’s finance director will take up that role at Amaze.
Part of the cash raised from the disposal will be invested in the Interact business. A further £1.9m will pay off existing bank debt. There should be cash left over which can be returned to shareholders.
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