UK public relations and advertising firm Chime Communications has this morning announced the acquisition of LNS Communications in the US for £11 million. Chime will pay £6.9 million initial cash and a further sum of up to £4.1 million depending on LNS’ profits for the years ended 31 December 2001 and 2002.
Chime’s businesses include PR firm Bell Pottinger Communications and advertising agency HHCL; Chime itself is 29.9% owned by global communications group WPP. LNS is a Boston-based high-technology public relations agency founded in 1994. In the financial year to 31 December 1999, LNS Communications made profits before tax of $0.7 million (£0.5 million) on turnover of $2.8 million. Unaudited profits for the year to 31 December 2000 are $1.9 million on a turnover of $4.9 million.
Lord Bell, chairman of Chime, commented: “This is an important move for Chime Communications. We have a very profitable new economy marketing and communications group, Chime online, alongside our more traditional business, Chime UK. LNS will enable us to secure US hi-tech clients both ‘here and over there’ which will enhance our growth. It is the first step in a US strategy to replicate our success in the UK.”
At 11:30am today shares in Chime were unchanged at 197½p.
