AIM-listed Cello has secured the deal for an initial cost of $5.5 million (£3.4 million) and the issue of 5,804,049 new Cello ordinary shares of ten pence each.
Cello has also announced the conditional placing of 5,333,333 new shares at a placing price of 52.5p to raise $4.5 million to part-fund the initial consideration for the acquisition, according to a statement from the company.
Mark Scott, CEO of Cello comments: ‘MedErgy will accelerate Cello’s expansion in healthcare research and communications and increase our exposure to international client briefs.’
According to the terms of the deal $3.5 million will be payable in April 2014 subject to certain performance conditions. Half of any amount payable will be to the seller, DVC Worldwide, and the remaining balance to MedErgy management.
Julia Ralston, CEO of MedErgy adds: ‘We are very excited about the opportunity to assist in growing Cello’s healthcare business and we are delighted to be part of a bigger organisation that enhances our ability to support our existing and future global clients.’
Cello currently owns research and consultancy groups including Rosenblatt, Leapfrog Research and Planning, SMT Consulting and 2CV.