Next Fifteen snaps up content marketing specialist

Marketing and public relations group Next Fifteen has acquired specialist technical content marketing specialist Publitek, which focuses on the global semiconductor and electronics markets, for an initial £6.2m mostly in cash.

The acquisition is expected to be earnings enhancing for Next 15 in the current financial year.

UK-based Publitek reported adjusted pre-tax profits of £2.0m on revenues of £5.9m in 2015, more than third of which were derived from the US, with a client list that includes Intel, ARM, Ericsson, Sony, Verbatim and Cadence.

Publitek, whose founder Bob Jones will remain on board, builds content platforms, creates and optimises content, and manages on and offline communities for more than forty clients.

Of the £6.2m fee, roughly £5.7m will be paid in cash with the vendors paid the balance in the shape of 228,704 new ordinary shares.

The fee can rise, based on the average profits of Publitek for the years ending 31 January 2018, 2019, 2020 and 2021, with which will be satisfied by cash or up to 25% in new ordinary shares at the AIM-listed company's choosing.

“As the marketing industry becomes increasingly specialised and technology-driven, Next 15 is looking to find firms like Publitek that can drive these niche but powerful online communities," explained chief executive Tim Dyson.

"Publitek’s deep domain expertise in the semiconductor and component markets has enabled it to provide a unique way of reaching the CTOs, CIOs, specialist engineers and product managers who buy and use these technologies. As part of the Next 15 group, we believe we can accelerate Publitek’s already significant growth prospects.”

Shares in Next 15 were up 2% to 229.5p by 1100 GMT on Friday.