Next 15 buys Pinnacle for £4.4 million
Next 15, which owns Text100, Bite, OutCast, and MBooth, has acquired tech PR agency Pinnacle for £4.4 million. At the same time, the digital marketing and PR group has reported a 30.3% rise in revenue in the six months ending 31 July 2016, as well as a 47.2% increase in pre-tax profit in the same period.
Pinnacle, co-founded by managing director Simon Flatt in 1996, is a specialist technical content and digital marketing business, with customers in the electronics, telecoms and engineering sectors including Toshiba Electronics, Sandvik Coromant and European Telecommunications Standards Institute.
It generated £1.1 million in pre-tax profit for the year ending 31 March 2016. Pinnacle is based in the UK but approximately 25% of its revenue comes from US-based clients.
Tim Dyson, CEO of Next 15, said: “Pinnacle extends our deep tech marketing capabilities and will enable us to accelerate our plans to build a similar business in the US.”
The initial consideration for the acquisition is around £4.4 million, of which £4 million will be settled in cash, with the remainder of the balance paid in share options. The business is being acquired debt-free.
Flatt will remain in the business following the acquisition. Pinnacle will be managed as one business alongside Publitek Limited, which was acquired by Next 15 March 2016.
Pinnacle MD Simon Flatt said: “Pinnacle has built a solid reputation for developing and delivering integrated, content-based marketing communications campaigns that target highly technical global audiences.
“It is clear that Next 15 truly recognises the value of this content-led approach. By becoming part of this dynamic, international group, we believe we can further enhance the value we bring to our existing clients, take better advantage of global opportunities, and further accelerate plans for growth.”