Chime Snaps Up Essentially In £18.2m Deal
Marketing services group Chime Communications has bought sports marketing agency Essentially Group in an all-share deal which values the latter firm at £18.23m as Chime looks to expand its sports offering ahead of the ‘golden decade’ for the UK as a venue for hosting sport.
The all-share deal is based on Chime’s share price of 177¾p at the start of the week.
Among a number of clients and business divisions, Essentially will add athlete representation to Chime’s reportoire, including a roster that includes the likes of England cricketers Paul Collingwood and Ian Bell.
Essentially also recently brokered sponsorship deals between the England and Wales and Cricket Board (ECB) and Unilever brand Sure Men and the ECB and Betfair.
The sports marketing group also brings offices in India, Australia and South Africa as part of the deal.
Chime’s principal sports marketing agency Fast Track, acquired in March 2007, recently arranged Emirates’ sponsorship of the World Twenty20 cricket tournament and HSBC’s sponsorship of the British and Irish Lions rugby tour in South Africa.
Analysts at Evolution Securities estimate the deal will add about £3.5m to Chime’s pre-tax profits in 2010.
Last month, Chime, which also owns PR business Bell Pottinger, posted a 4% increase in pre-tax profit to £8.5m for the first half of the year.
