Photon Group (PGA) announced that it has acquired 100% of independent public relations consultancy, Frank Public Relations Limited (Frank PR). The purchase price comprises an up front payment in cash and loan notes of $18.5 million plus deferred payments tied to performance milestones. Frank PR is a consumer public relations company named Marketing Magazine's PR Agency of the Year in 2005 and 2006, the only public relations agency to receive the award twice. Its clients include a roster of blue-chip companies in areas such as leisure, fashion, lifestyle, consumer technology and personal finance.
Executive chairman, Tim Hughes said the acquisition of Frank PR is an excellent launch pad for an entry into the UK's rapidly expanding specialised communications market. This is the third acquisition in the UK, where Photon continues to look for opportunities.
"The strategy in the UK is to build a market position in the lower risk, high margin and well managed businesses focusing on the research, public relations and field marketing sectors," Mr Hughes added.
Photon CEO Matt Bailey said Frank PR is known for its creative energy but it is also results-driven. The company, which has an excellent line up of retainer and project-based clients, has a strong track record of revenue and earnings growth.
Frank PR Chairman and founder, Graham Goodkind said Photon is a fast-growing young company like ourselves and we feel they are the right partner to expand the business further.
Over the next 12 months, the acquisition of Frank PR is expected to be accretive to Photon's earnings per share.
Yesterday, shares closed down 4c to $6.20.