Next Fifteen acquires Shopper Media Group for £15.7mln

Next Fifteen Communications PLC (LON:NFC) announced the acquisition of data-led business Shopper Media Group (SMG) for £15.7mln in cash and shares.

SMG, which includes subsidiaries Capture Marketing, Lobster Agency and Threefold Agency, specialises in commerce marketing activation, connecting retailers and brands with shoppers at the point of purchase both online and in-store.

Clients include The Co-op Group, Deliveroo, The Very Group, Pladis and McCain Foods.

The business was founded in 2008 by Joel Hopwood and Matthew Lee, who were previously with Dunnhumby and who will continue in their roles following the acquisition.

Sam Knights, previously with Proctor and Gamble, will continue to run the business as chief executive and SMG will continue to operate as an independent brand within the Next 15 group.

The AIM-listed firm said the acquisition will help deliver its strategy of using data to help its customers determine the optimum marketing spend.

The initial consideration for the acquisition is £15.7mln, with £11.8mln paid in cash and the rest by issuing 569,181 new ordinary shares in Next 15.

A top-up payment will be paid February 2022 based on underlying earnings (EBITDA) performance of SMG for the year ending September 2021, with further consideration to be paid in June 2023 and 2025, also based on performance.

The acquisition is expected to be earnings accretive for Next 15 in the current financial year, the communications firm said.