The Marketing Group Acquires TDA GROUP And Addiction

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News Desk 2018
The Marketing Group Acquires TDA GROUP And Addiction Advertising Increasing The Group’s EPS And EBITDA

•    EBITDA per share forecast to increase to 36.52 cents in 2016*. •    Total EBITDA forecast to increase to €12,486,392 in 2016*. •    Number of new ordinary shares created is 2,962,085. •    Wholly owned subsidiaries now total 19. •    Total number of employees increase to 533. *Based on a pro forma forecast of the whole group of 19 companies for 2016. Stockholm, September 26th, 2016 – THE MARKETING GROUP PLC (“the Group”), the world’s leading digital marketing and advertising agglomeration, announces the strategic acquisition of TDA Group and Addiction Advertising, strengthening its digital marketing and advertising capabilities in the US and Singapore. The acquisitions continue the Group’s expansion strategy to add profitable, debt -free and well-managed private businesses that enhance its suite of digital services in key markets. The two companies were incorporated through the special purpose holding company Rinnik Group. The transaction was completed at a strike price of EUR 4.22 per share (based on a 10-day volume weighted average price). This requires the creation of 2,962,085 new ordinary shares, such that the total number of Ordinary shares issued by The Marketing Group has increased from 31,223,827 to 34,185,912. The acquisitions bring the total number of portfolio businesses within The Marketing Group to 19. Together these businesses have 32 offices in 8 countries, serving clients across the USA, Europe, Asia, Australia and New Zealand. The new subsidiary businesses added to The Marketing Group are: 1.    TDA Group LLC, established in 1986 and based in Silicon Valley, is a B2B marketing and advertising agency for the US high-tech industry. It plans, creates and manages content marketing programs for clients including IBM, Intel, Dell and Lenovo. It has 25 employees. For more information, visit the Company’s website at www.tdagroup.com. 2.    Addiction Advertising Pte. Ltd., established in 2011 and based in Singapore, is an advertising agency serving public and private sector clients including the Monetary Authority of Singapore, the Singapore Building and Construction Authority, Standard Chartered Bank, OCBC Bank and China Life Insurance. It has 11 employees. For more information, visit the Company’s website at www.addictionadvertising.com. The acquired businesses will retain their own unique brands while benefitting from the scale, global reach and access to new products and services that come with being part of The Marketing Group’s global network. Collaborations and partnerships between portfolio businesses will lead to new client relationships, help to attract new business opportunities and offer the potential for significant cost synergies. Jeremy Harbour, Executive Chairman, The Marketing Group plc comments: “We are delighted to add TDA Group and Addiction Advertising to The Marketing Group’s portfolio of businesses. Each brings valuable talent and expertise that complement our existing service offering and help to further strengthen our positions in the US and Singapore. Going forwards, we continue to identify and execute further accretive acquisitions that create value for our shareholders and support our ambition to build a global business, offering clients a full spectrum of digital services.” Financials* EBITDA (The Marketing Group) for year ending 2016    €11,064,384 EBITDA (Rinnik) for year ending 2016    €1,422,008 Post Acquisition EBITDA    €12,486,392 Current Earnings per Share    35.45c Earnings per Share post acquisition    36.52c % EBITDA Increase    12.85% % Share cap Increase    9.49% % Earnings Per Share Increase    3.03% * Based on a pro forma forecast for the whole group of 19 companies for 2016. Rinnik Ltd Headline Financials     2015    2015    2016E    2016E Company    T/O    EBITDA    T/O    EBITDA Addiction Advertising    €1,300,513    €233,239    €2,964,565    €790,406 TDA Group    €3,866,869    €826,664    €3,476,311    €631,601 Total    €5,167,382    €1,059,902    €6,440,876    €1,422,008 Jeremy Harbour will be conducting an Investor Video Call regarding this press release on the 27th September 2016, 9AM CET. Kindly join the call with the following link: https://zoom.us/j/985562612 For more information, please contact Hannah Middleton, Director and Communications Director Phone: +65 8193 7625 E-mail: hannah.middleton@marketinggroupplc.com Malcolm Robertson / Tom Evrard Phone: +65 6831 7829 / 6831 7801 E-mail: unitygroup@fticonsulting.com This information is information that The Marketing Group plc is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 8am CET on 26th of September 2016. The Marketing Group in brief The Marketing Group plc is a global marketing and advertising company that brings together a portfolio of successful and independent digital marketing businesses, each offering unique and complementary products and services. Together these businesses make up a global network offering a full suite of digital marketing and advertising services. The consolidated group supports its subsidiaries with management and coordinating activities as well as a common operating platform. The Marketing Group was incorporated in May 2015 and listed on Nasdaq First North Stockholm on 8 June 2016. Mangold Fondkommission AB, +46 8 -5030 15 50, is the Company’s Certified Adviser and liquidity provider. For more information, please visit the Company’s website www.marketinggroupplc.com.

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