UK insight and communications services company Creston plc (LON:CRE) said on Wednesday it had taken a controlling stake in local digital healthcare specialist DJM Digital Solutions Ltd as part of its strategy to strengthen its presence in the digital marketing segment and expand the portfolio of its health division.
Creston is paying an initial £1.2m ($1.9m/€1.5m) for the 75% stake and pouring some £300,000 in working capital into the company. The terms of the deal also call for the payment of an additional consideration of up to £1.8m that will be made in June 2015. The buyer has also secured a call option exercisable after April 2020 to buy the rest of DJM for a maximum £2.4m.
With the deal, which is seen to have a modest impact on Creston’s earnings this fiscal year, the company seeks to make use of the growing adoption of smartphones and tablets among healthcare specialists, which highlights the need of bringing the industry’s marketing communications in line with innovative work practices, Creston’s CEO Don Elgie said. With DJM on board, Creston expects that its healthcare division will experience strong growth given the increasing significance of digital technology for its clients.
DJM, headquartered in Richmond, Surrey, has a 26-strong headcount. The company recorded revenues of £600,000 in its fiscal year to 31 July 2012.