The directors of a digital direct marketing specialist have agreed to spend up to £16 million on buying two companies in a bid to strengthen the group’s operations.
Digital Marketing has bought Cybercom, an IT systems consultancy and electronic trading-focused systems integrator, and direct voice marketing company Gasbox.
Cybercom was sold by Cybercom Group Europe for £6 million in cash. The deal was funded in cash, funded from existing resources and debt. Digital Marketing has also paid £1 million cash to bring Gasbox into the group with up to £9 million due if the acquired company meets agreed profit targets six and 18 months following completion.
Gasbox was targeted to complement Digital Marketing’s voice marketing business, HSM, while Cybercom enhances its e-commerce offering.
Digital Marketing chief executive Ben Langdon said these deals bring new expertise and opportunities into the group.
Cybercom joins Digital Marketing’s online media and marketing division, with Gasbox now trading within its direct marketing operation.
London-based Cybercom’s clients include IBM, John Lewis, Kickers, Lloyds TSB, Speedo, Thomson Reuters and Waitrose. In the eight months to September 2008, Cybercom reported EBITDA of more than £700,000.
Gasbox’s campaigns are based on targeted customer information. It was established two years ago by data services specialist Jaywing’s managers Andy Gardner and Martin Boddy. It reported EBITDA of £350,000 in the five months to September 2008.
