Ebiquity PLC Announces Acquisition Of Fairbrother Lenz Eley; New Debt Facilities

Ebiquity PLC announced the acquisition of the entire issued share capital of FLE Holdings Limited, the holding company of the FLE Group (FLE or the Acquisition). FLE is being acquired for an initial consideration of GBP5 million with a maximum total consideration of up to GBP11 million, depending on the performance of the FLE business in the year ending December 31, 2012. The Company has the option to satisfy not more than 25% of the deferred consideration through the issue of ordinary shares. FLE is a international media consulting business with over 70% of its business derived from international client assignments. The Company has at the same time entered into a new £30m debt facility with Bank of Ireland and Barclays. This new facility has been used to refinance existing debt, to fund the Acquisition, and to make funds available for other potential future acquisitions and working capital requirements. It is not anticipated that net debt:EBITDA (on a pro forma basis) will increase beyond 1.5 as a result of the Acquisition. The Company has at the same time entered into a new GBP30 million debt facility with Bank of Ireland and Barclays. This new facility has been used to refinance existing debt, to fund the Acquisition, and to make funds available for other potential future acquisitions and working capital requirements.