A communications specialist with operations in Riyadh and Dubai has been acquired by international public relations and healthcare communications group Huntsworth Plc in a deal worth up to US$12 million in cash.
A communications specialist with operations in Riyadh and Dubai has been acquired by international public relations and healthcare communications group Huntsworth Plc in a deal worth up to US$12 million (£8.4 million) in cash.
Huntsworth CEO Sally Withey said the acquisition of Momentum would expand the company’s footprint in the Middle East, bringing in additional clients from Abu Dhabi and Bahrain.
The financial terms of the deal include an initial cash payment of $2.8 million (£2 million) and a deferred payment based on profits for the year ended 31 December 2009. A final payment in cash or paper based on profits for the four years to 31 December 2011 has also been agreed.
For the year ended 31 December 2008, Momentum reported pre-tax profits of £464,000 on revenues of £1.4 million, with gross assets of £1.5 million.
Withey added: “We are committed to expanding our global footprint to the benefit of our existing and new clients. The Middle East remains a vitally important part of the world’s economic geography where we continue to see strong growth opportunities. We have worked closely with Momentum for a number of years and are delighted to confirm that the agency is now fully part of the Huntsworth family.”
Guy Taylor, Ben Castree, Sonja Ohly and Eiluned Castree, who were members of Momentum’s senior management team, will continue to lead the business following the acquisition.
