SAN FRANCISCO—Next Fifteen Communications Group, parent company of international technology firms Text 100 and Bite Communications, has acquired OutCast Communications.
With offices in San Francisco and New York, OutCast has a client list that includes established technology brands such as Dell Enterprise Products Group, Yahoo!, Mercury, EMC, VMware and salesforce.com, as well as emerging technology companies such as Blinkx, Fortify Software and Oakley Networks.
London Stock Exchange-listed Next Fifteen will pay initial consideration of £3.3 million ($6 million) for OutCast, to be funded out of existing cash and debt facilities and a vendor placing which raised £2.5 million. Further consideration will be paid over the next five years based on the performance of the company, with total consideration capped at £7.2 million ($13 million).
Under the deal, OutCast will continue to operate as a separate business under its own brand name, with founders Caryn Marooney and Margit Wennmachers becoming co-presidents of the business. They will report directly to Next Fifteen’s chief executive officer, Tim Dyson.
Says Dyson, “Next Fifteen is keen to build a group that comprises best-in-class consultancies. We have long been impressed with the way OutCast has approached this sector and have enjoyed competing with it over the years. OutCast has built a great team of consultants that have together built a great business. We look forward to working with them during the next stage in their development.”
OutCast was founded in San Francisco in 1997. In recent years it has experienced strong growth, with revenues in 2004 increasing 28 percent to $6.2 million. Operating profits in the same year were $1.6 million. The firm has also won a string of awards including PR Week’s Boutique Agency of the Year award in 2001 and the publication’s award for Technology Campaign of the Year in both 2003 and 2005.