Intl Marketing&Sales - Acquires V.O Communication

RNS Number:4780F
International Marketing&Sales Group
10 October 2007

Date:         10 October 2007
On behalf of: International Marketing & Sales Group Limited ('IMSG' or 'the
              Group')
Embargoed:    1200hrs


International Marketing & Sales Group Limited
acquires Balkans public relations firm V+O Communication

* V+O becomes IMSG's platform for growth in business and marketing communication


International Marketing & Sales Group Limited (AIM: IMSG), the emerging markets
focused sales and marketing company, today announces the acquisition of V+O
Communication ('V+O'), one of the leading Balkans business and marketing
communication consultancies.

The acquisition enhances and strengthens IMSG's presence in the region's high
growth economies, broadening the scope of services offered to its global client
base.

V+O is recognized as an innovative and versatile consultancy, able to
successfully bridge the gap between local needs, demands and expectations and
international best practices.

V+O's network and expertise in one of the world's fastest growing regions make
it an ideal partner for IMSG and a platform for the Group's strategic growth in
the public relations sector.

Established in 2000, V+O has grown rapidly and is today a leading agency in
Greece and the Balkans. With offices in Athens, Sofia and Bucharest and a strong
team of 60 communication specialists, V+O has advised on some of the region's
most important corporate transactions, while building a substantial base of
local and international blue chip clients and leading brands.

In the year to 31 December, 2007, V+O's turnover is expected to be about
US$7.3m.

V+O's clients include Coca-Cola Hellenic Bottling, HP, Wind, Credit Agricole,
Eurobank, BNP Paribas, Sagem, Google, Hilton International, Emirates Airlines,
Athens International Airport, Swissport, Pizza Hut, KFC, Philip Morris, Sonae
Sierra, Frigoglass, GlaxoSmithKline, Germanos, IKEA, Heineken, Bayer, Roche,
RomTelecom, The Coca-Cola Company, Globul, AXA, Global Finance

IMSG has acquired the entire share capital of V+O for an anticipated maximum
consideration of Euro10.75m.

The exact amount of the purchase consideration, which will be paid in three
tranches over the next 4 years, will be calculated by reference to the
profitability of V+O over this period as audited in accordance with
International Financial Reporting Standards ('IFRS').

Approximately 85% of the purchase consideration will be paid in cash and the
balance by the issue of new fully paid ordinary shares in IMSG.

The first tranche of consideration, representing 50% of the purchase price, will
be a multiple of 10 or 11 times V+O's net profit after tax for the financial
year ending on 31 December 2007, depending on V+O's level of profitability. The
second and third tranches of consideration will be paid in 2010 and 2012
respectively and will in each case be based on V+O's performance during the
relevant period.

Commenting on the acquisition, Gregory Thain, Executive Chairman of IMSG, said:
'We are very pleased to announce the acquisition of V+O Communication. The
company is a market leader in the Balkans and its acquisition will provide IMSG
with the platform for development of high-margin business and marketing
communication services across emerging markets and beyond. V+O has a strong and
loyal client base which will enable IMSG rapidly to gain further leverage from
its presence in other markets.'

Joint managing directors of V+O Communication, Thomas Varvitsiotis and John
Olympios, commenting on the acquisition, stated: 'We were attracted to IMSG
because of its excellent reputation in rapidly and successfully growing and
integrating communication companies in emerging markets. We have set a very
aggressive expansion target over the next few years and could not have found a
better partner to understand and contribute to its accomplishment. Becoming part
of the IMSG Group will offer both our clients and our people compelling
benefits.'

IMSG's Acquisitions Director, Lau Geckler, led the transaction, and was advised
by Bevan Brittan London, together with its Greek advisers.

The Group's NOMAD and broker is Canaccord Adams Limited.

- ends -

Enquiries to:

Lau Geckler
International Marketing & Sales Group Limited      Tel: + 7 495 796 6141

Emma Kane / Samantha Robbins / Paul Dulieu
Redleaf Communications Ltd                         Tel: +44 (0)20 7822 0200

Mark Williams / Clayton Bush
Canaccord Adams Limited                            Tel: +44 (0)20 7050 6500


Notes to Editors

About IMSG

* IMSG was founded in 1996 by its Chairman and Chief Executive Officer,
  Gregory Thain.

* The Group was admitted to trading on AIM on 6 December 2005.

* Since 2002, the EBITDA of the Group has grown at a rate in excess of 100% per
  annum. IMSG has been profitable since 2000.

* The Group's clients include multinational and first tier local companies
  operating in FMCG, telecommunications, retail trade, banking and finance,
  automotive, consumer electronics and pharmaceutical industries.

* IMSG currently has 21 offices in emerging markets: Moscow, Saint Petersburg,
  Yekaterinburg, Kazan, Nizhniy Novgorod, Novosibirsk, Rostov-on-Don, Samara,
  Krasnodar (Russia), Kiev (Ukraine), Almaty, Astana (Kazakhstan), Dushanbe
  (Tajikistan), Istanbul (Turkey), New Delhi, Mumbai, Bangalore, Chenai,
  Kolcata, Hyderabad (India) and Budapest (Hungary).

* After the issue of new IMSG shares as consideration for the acquisition of
  V+O, and based on the current share price, there will be approximately 46.1m
  IMSG shares in issue and the Board of IMSG will have authority to issue
  approximately 1.3m further new shares for cash or as consideration for future
  acquisitions.

* Further information about the Group is available on its website at:
  http://www.imsg.co.uk


                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
ACQBDBDGDGBGGRG

Return to Regulatory News