Idox buys full-service digital agency Rippleffect for £2m

Idox has acquired full-service digital agency Rippleffect for £2m.

The consideration comprises the acquisition price of £1.95m and an adjustment of about £0.05m based on the working capital and indebtedness of Rippleffect as at the date of acquisition.

The AIM-listed supplier of specialist information management solutions and services said the acquisition was in line with its target of achieving £100m of revenues at sustainable margins in the short to medium term through a combination of organic growth and acquisitions.

Founded in 1999, Rippleffect is ranked as one of the UK’s top 20 digital agencies and its current clients include the likes of Everton and Liverpool football clubs, UK Sport, Visit Guernsey, Aldermore Bank and JD Wetherspoon.

For the year to 27 December 2015, the company reported revenue of £6.3m and net profit of £34,934, with net assets of £1.2m.

Chief executive officer Richard Kellett-Clarke said: “The acquisition of Rippleffect significantly enhances our growing presence in the digital B2C marketplace. It supports our strategy to extend our markets as well as increasing our capability to deliver digital services across our public and private sector markets.

“It is expected to be earnings enhancing and to support our target of achieving £100m of revenues in the short term to medium term."

At 0955 BST, Idox shares were up 0.1% to 68.05p.