Source: ADVFN
ADVFN PLC is pleased to announce that it has completed the acquisition of Equity Holdings Limited (EH) for an aggregate consideration of up to £1,500,000 to be satisfied by an initial payment of £500,000 at completion in cash and ADVFN PLC new ordinary shares, plus a deferred consideration set by reference to the turnover of EH in the three financial years ending 30 June 2008.
We have also received FSA approval for the change of control of the board of Equity Holdings Limited. Application has been made for 7,488,108 new Ordinary Shares to be admitted to trading on AIM and it is anticipated that dealings shall commence on 6th February 2006.
The deferred payments are based on turnover milestones being achieved for the years ending June 06, 07 and 08. These payments are in a range from nil to £332,000 a year and will become payable through the issue of Ordinary Shares in ADVFN PLC, depending upon the achievement of business goals by Equity Holdings for the years ending June 06, 07 and 08.
Equity Holdings Limited is the owner of the well known research brand Equity Development which is the City's leading regulated provider of company sponsored research. It has produced analysis on well over 100 companies ranging in size from established "giants", such as BP, to young companies embarking on a quoted existence via Ofex. ED has just helped a resources client raise £30m from institutions in the UK.
Brian Basham, Chairman of Equity Holdings Limited and founder of the company in 1997, said: "This is an opportunity to take EH onto the next stage of its development. Pioneering change is never easy, but when it works, it is hugely satisfying. We are pleased to have demonstrated that there is a place in the complex world of the City for company-sponsored research that sets out to explain companies in depth and detail. The challenge has been to stick to our guns and remain objective. Institutional acceptance is the best demonstration of our success. ADVFN are proven leaders in their own field of expertise and will be excellent partners to work with us in expanding on the reputation we have nurtured for our clients' benefit."
Clem Chambers, CEO of ADVFN said: "The Equity Development brand and product will be a great addition to the ADVFN stable of content. The private investor can never have too much quality research and with the plethora of companies on the market there has never been a more pressing need for companies to be covered by incisive analysis. We look forward to increasing the reach of Equity Holdings' work and expect everyone; ADVFN users, investors and listed companies to benefit."