Next 15 acquiring Circle Research in £5.2m deal

Digital communications group Next 15 confirmed on Wednesday that it was acquiring the entire issued share capital of business-to-business market research consultancy Circle Research, through its data and insights subsidiary MIG Global.

The AIM-traded firm said Circle was founded by David Willan, Andrew Dalglish and Beth Pearson in 2006.

Dalglish and Pearson were set to stay as joint managing directors, and although Willan would relinquish his role as chairman, he would continue to support the business in an advisory capacity.

Clients of the business reportedly included Vodafone, Google, Mastercard, BSI, SITA, Maersk and Facebook.

“Next 15 is committed to building a deep data and insight capability at its core,” said CEO Tim Dyson.

“Circle is an important step in that strategy, a powerful addition to the MIG data and insights offering and we are excited to have them as a part of the group.”

The initial consideration for the acquisition was £5.21m, comprised of £3.01m as an upfront payment for the business and £2.20m for the net assets acquired.

Of the total initial consideration, £4.94m was to be satisfied in cash, with the balance to be satisfied by the issue to the vendors of 67,360 new ordinary shares in Next 15.

Further consideration could become payable based on the profits of Circle for the years ending 31 January 2019 and 31 January 2020.

The Next 15 board said any deferred consideration that became payable could be satisfied by cash, or up to 25% in new ordinary shares, at the option of Next 15.

It said the acquisition was expected to be earnings-enhancing for the group in the current financial year.

“We’re confident that joining MIG and Next 15 is a positive move for Circle’s clients and team,” Beth Pearson commented.

“MIG share our core values – great work, delighted clients and happy people – and will enhance our offering by bringing cutting-edge research technology and an on-the-ground international presence.”

For the year to 31 March, Circle reported net revenues of £2.24m, adjusted profit before tax of £1.01m and net assets of £2.23m, and the board confirmed Circle was being acquired debt-free.

“As Circle will remain an autonomous brand within MIG it’s really business as usual,” added Andrew Dalglish.