Digital Marketing completes double deal

A digital direct marketing group has continued the expansion of its business by adding two more companies to its portfolio.

Digital Marketing Group plc has spent as much as £12.1 million buying Graphico New Media and Hyperlaunch New Media.

Graphico is a full service creative digital agency with mobile marketing expertise, while Hyperlaunch is a digital creative marketing business.

Digital Marketing is paying up to £8.6 million for Graphico with the Hyperlaunch deal capped at £3.5 million. These acquisitions will be funded through existing resources, loan notes, debt and shares.

The transactions are part of the AIM-listed group’s buy and build strategy that targets companies with online and offline capabilities as well as database marketing expertise.

This latest move follows Digital Marketing’s acquisitions of Cheeze and Alphanumeric in January.

The group identified Graphico and Hyperlaunch as suitable acquisition targets as they complement its existing operations well as introduce new products and clients to its business.

Graphico designs, develops and maintains web-sites and is based in Newbury with some 70 employees. Last year, it reported a £4.1million turnover, up from £2.4 million in 2005, with an operating profit of £176,000.

Bristol-based Hyperlaunch operates through three divisions: Creative/Development, Online PR and Buzz Marketing. Its clients include Universal Music, Atlantic Records, Samsung and Warner Bros. It made £326,000 in its last financial year from a £1.6 million turnover.