2014

Year

Media

Sector

The Communications Agency

Client

Communisis plc

Acquired By

The Communications Agency / Communisis plc

Cavendish Corporate Finance, the UK’s leading sell-side mid-market M&A advisory firm, is delighted to have advised the shareholders of The Communications Agency (TCA), the brand response and customer relationship marketing agency, on the £8m sale of the company to Communisis plc, the personalised customer communication services provider.

TCA is a long-established, award-winning agency with broad capabilities and experience across all media channels including TV, experiential and digital. TCA’s longstanding clients include high street retailers, financial institutions and major charities such as Cancer Research UK. Its 42 employees will all transfer to Communisis under the deal, including its founder and chairman, Robert Prevezer, and chief executive, Adam Leigh, who will take on senior executive roles in the company.

Communisis’ communication services are principally delivered through print and direct mailing, so the transaction offers considerable scope for growth and revenue synergies with Communisis’ existing client portfolio, along with the cross-selling of other marketing services in social media, video, digital development and content marketing.

In the year to 31 October 2013, TCA generated adjusted EBITDA of £0.45m on a turnover of £4m (net of recharged costs). The consideration of £8m will be satisfied in cash of £6.55m and new shares in Communisis of £1.45m. , and represents a significant EBITDA multiple.

Andy Blundell, Chief Executive of Communisis plc commented:

“TCA is a long-established, award-winning and well-respected agency that brings an impressive range of new capabilities and experience to the Group’s higher-margin design segment. It will sit at the heart of Communisis’ creative offering. The growth prospects are excellent.”

Linda Sullivan, Partner – Media and Digital at Cavendish who led the transaction, commented:

“This was a great result for our clients and is a cornerstone acquisition for Communisis’ new design division. The marketing and communications sector is buoyant and there is an interesting universe of buyers for creative, digital agencies, as this transaction illustrates. We aim to be as creative as our clients in thinking outside the box and delivering the best results.”

Robert Prevezer, Executive Chairman and founder of TCA commented:

“ Linda Sullivan, the Cavendish Media and Digital partner, and James Ellis were excellent. They totally understand our sector and were with us every step of the way, achieving a great result for the shareholders and a very good home for our business going forward. I highly recommend them.

Key Contacts

Linda Sullivan

Partner & Head of Media and Digital

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James Ellis

Partner & Head of Industrials

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