Digital Marketing Group (DMG) has acquired the IT consultancy and systems integrator Cybercom for £6m in an all cash deal.
Cybercom is a profitable and growing business; it has achieved revenues of £4.4m and EBITDA of £721,000 in the first eight months of this year, almost the same as it achieved in the whole of 2007. Also, the company has a strong portfolio of blue chip clients including IBM, John Lewis Partnership, Kickers, Lloyds TSB and Speedo.
“The company has grown profitably for several years and, with the continued forecast expansion of e-commerce, we see many opportunities for this growth to continue further,” said Terry Hunter, managing director of Cybercom Group UK.
“We are very much looking forward to becoming part of the DMG team. They
have wide experience in the digital market and we can help them by sharing our in depth expertise of e-commerce and electronic trading.”
DMG believes that the acquisition will enhance its e-commerce offering and creating significant potential for cross-selling through an enlarged client base.
It is also buoyant about prospects for growth as the e-commerce market has continued to grow this year despite the recent economic slowdown. eMarketer predicts that UK business-to-consumer (B2C) e-commerce sales will total £59.8bn in 2008, up more than 28% since 2007.
“The business will bring new expertise and skills into the group and complement further our specialist digital marketing offering e-commerce represents a substantial growth opportunity and the acquisition of Cybercom strengthens our position to capitalize on it,” Ben Langdon, Digital Marketing Group’s chief executive.
“We look forward to welcoming Cybercom into the group and working together to strengthen our position as the UK's leading digital direct marketing group.”
The acquisition is being funded via a combination of existing cash resources, loans and bank facilities.
© Crimson Business Ltd. 2008