REG - Mission Group PLC - ACQUISITION OF INFLUENCE SPORTS & MEDIA

MissionAnnouncement

08/12/2022 07:01

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RNS Number : 9752I  Mission Group PLC (The)  08 December 2022

8th December 2022

The MISSION Group plc

("MISSION" "The Company" or "The Group")

ACQUISITION OF INFLUENCE SPORTS & MEDIA

MISSION Group plc (AIM: TMG), creator of Work That Counts(TM), comprising a
group of digital marketing and communications Agencies delivering real,
sustainable growth for its Clients, is pleased to announce the acquisition of
Influence Sports & Media ("Influence"), by its Agency Mongoose, for an
initial consideration of £1.5 million.

Headquartered in London and with a strong presence in the US, Influence Sports
& Media works with sponsors and brands, rights holders, investors and
industry Clients to deliver marketing communications strategies, commercial
programs, and actionable market intelligence. The team has extensive and
long-standing relationships with leading players in global sport, including
Rolex, Mercedes F1, Aramco, Alpine F1, the 37(th) America's Cup and World
Sailing.

In the financial year ended 31 October 2021, Influence reported a gross profit
of £1.0 million, pre-tax profits of £0.3 million and, as at 31 October 2021,
had net assets of £1,000.

The Acquisition marks the latest step in Mongoose's plans to strengthen and
scale its social media and marketing capabilities across the sports and
entertainment markets. The Board expects the acquisition to be earnings
enhancing with immediate effect.

Terms of the Acquisition

Influence has been acquired for an initial consideration of £1.5 million for
the business ("Initial Consideration"). The Initial Consideration is to be
satisfied by a cash payment funded through the Group's existing cash
resources.

Contingent Consideration

Under the terms of the Acquisition Agreement, deferred consideration is
payable, contingent on Influence's financial performance in 2023, 2024 and
2025 ("Contingent Consideration").  The Contingent Consideration is to be
satisfied by the issue of new ordinary shares (up to a maximum of 40% at
MISSION's discretion) with the balance payable in cash. The cash element is
expected to be mostly funded from future cash-flows generated by the enlarged
Mongoose Group.

To achieve the maximum total consideration (Initial Consideration plus
Contingent Consideration) of £8.0 million, Influence's compound EBITDA growth
is required to be 47% and it would need to achieve cumulative EBITDA of £4.8
million in the three years ending 31 December 2025.

Talking of the acquisition, Alistair Watkins, Founder & CEO of Influence
Sports & Media, said:

"Over the last 10 years we have continued to build our presence in sport,
delivering best-in-class services for leading global brands, teams and
properties. Formula 1 and the America's Cup are both key pillars of the
agency, and it is a hugely exciting time as both properties are seeing
exponential growth and interest around the world. We are delighted to be
joining The MISSION Group plc and the newly formed Mongoose Group to drive
international opportunities and offer a greater breadth of services for all
our clients."

Commenting, James Clifton, Chief Executive Officer of MISSION said:

"In challenging times, MISSION continues to make good progress against our
strategic priorities. Our latest investment in our leading entertainment,
sports, lifestyle and Marketing agency Mongoose Group, through the acquisition
of Influence Sports & Media, is yet another example of our commitment to
developing our capabilities and Client servicing offering, ensuring the Group
is well placed for long-term growth."

ENDS

ENQUIRIES:

 James Clifton, Chief Executive Officer

 Giles Lee, Chief Financial Officer

 The MISSION Group plc                            020 7462 1415

 Mark Percy / James Thomas (Corporate Advisory)

 Fiona Conroy (Corporate Broking)
 Shore Capital (Nomad and Broker)                 020 7408 4090

 Kate Hoare / Alexander Clelland / India Spencer
 HOUSTON (Financial PR and Investor Relations)    0204 529 0549

 

NOTES TO EDITORS

MISSION is a group of digital marketing and communications Agencies. Employing
1,000 people across 27 locations and three continents, the Group successfully
combines its diverse expertise to produce Work That Counts(TM) for our
Clients, whatever their ambitions. Creating real standout, sharing real
innovation and delivering real business growth for some of the world's biggest
brands. www.themission.co.uk (http://www.themission.co.uk)

Influence Sports & Media was founded in 2012 by Alistair Watkins.  The
agency provides commercial, communications and content expertise to brands,
teams, athletes, commercial rights holders and governing bodies in the world
of sport.  For the last decade, Influence Sports & Media has a
prestigious record of building long-term relationships with the world's
leading companies and sports properties.

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