Healthy Cello Makes Healthcare Buy

Cello Group has acquired healthcare communications agency iS Healthcare Dynamics for an initial c.£2.5m in cash and shares and additional performance-related payments of up to £3.3m. At its AGM today, the Group also reported 'strong trading in the first quarter'.

iS, which specialises in medical communication services to UK, European and global healthcare clients, had an unaudited turnover of £6.6m for the year to 31st March 2014; gross profit of £3.9m and profit before tax of £1.1m; and projected operating margins of around 20% of gross profit. The transaction is expected to be immediately earnings enhancing.

IS, which will now join the Cello Health division, was established by Isaac Batley and Steve Smith in 2003, is based in Farnham, Surrey and employs around 50 people. Cello said the buy will 'further complement the division's insight, advisory and communication based capabilities in the healthcare sector.' More specifically, Cello Health Chairman Stephen Highley commented: 'Effective evidence based communications is a key imperative for our clients. iS adds significant strength and expertise in this area and... provides us with a significant global footprint in medical communications.'

Batley and Smith said the deal would 'significantly add to the firm's offer and give it immediate access to like-minded people', as well as the promise of expanding its geographic reach and breadth of solutions.

At the Group's AGM this afternoon, Chairman Allan Rich reported 'strong trading in the first quarter of this year, with strong gross profit growth both in Cello Health and Cello Signal'. Rich added: 'The Board is confident that the Group will deliver half year results in excess of the prior year and that full year expectations will be met.'

Web site: www.cellogroup.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

• Insight Research Group
• All news