Langdon’s DMG snaps up Cheeze
Digital Marketing Group, the AIM-listed marketing services group headed by Ben Langdon, has spent at least £24m on buying fast-growing digital media planning and buying agency Cheeze and data analysis consultancy Alphanumeric Group, which trades under the name Jaywing.
DMG is paying £6m in cash and another £3.5m in shares for Cheeze, which was set up in 1999 in Ipswich by Katherine Jerman and Jamie Riddell. Cheeze’s turnover in the year to December 31, 2006 was £10.5m (up by 64% on the previous year) with a pre-tax profit of £768,000 (up 72%).
In addition to digital media planning and buying, Cheeze also offers search marketing, customer relationship marketing, Web 2.0 and digital direct marketing services. If Cheeze hits targets between now and March 2008, DMG will pay out another £1.1m in shares (based on the current share price).
Jaywing is being bought for an initial consideration of £14.5m, £8.6m in cash and the rest in shares. Jaywing had turnover of £10.8m in the year to 31 March 2006, ahead on the previous year by 98%.
DMG floated on AIM on 26 October 2006 and simultaneously acquired two agencies specializing in online and offline direct marketing; HSM Limited (including "Inbox Digital" and "HSM Telemarketing") and Scope Creative Marketing Limited (trading as "Dig For Fire"). As of January 25, 2007, DMG was capitalised at £21.4m.