The communications group Chime has continued its overseas expansion with the acquisition of SJX Partners, a US marketing firm that promotes Cirque du Soleil, for as much as £12.1m.
Chime is paying £5.3m up front, with the rest dependent on the performance of SJX until 2020. It is paying for the takeover with 70pc cash and the rest in shares.
As well as Cirque du Soleil, the Las Vegas show, SJX represent the US Tennis Association and Little League Baseball. It will form part of Chime’s focus on sports marketing, which has increased since it bought Lord Coe’s consultancy business two years ago.
Alongside the acquisition, Chime said it had extended and increased its £95m credit facility, which had been due for repayment in September 2016. A new deal will allow it to borrow £130m until 2019.
The acquisition of SJX is the latest in a series of sports acquisitions by Chime. Last month it bought BC Sports Management, which manages rugby players.
Chime’s biggest sports deal, the £71m acquisition of the Formula 1 specialist JMI last year, prompted disquiet from major shareholder WPP. Sir Martin Sorrell’s group said it would look to sell its stake in Chime as a result but it remains invested.
{ SOURCE: The Telegraph }
