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Access Intelligence to Acquire Online PR, Marketing and Journalism Intelligence Provider ResponseSource
Friday 12 October 2018

12 October 2018 - UK-based communications and reputation management provider Access Intelligence (AIM: ACC) has conditionally agreed to acquire the entire issued share capital of online PR, marketing and journalism intelligence provider ResponseSource Ltd., the company said.

On 9 October 2018, Access Intelligence entered into the acquisition agreement with the ResponseSource sellers to acquire the entire issued share capital of ResponseSource (subject to admission of the consideration shares to trading on AIM, completion of the second placing and certain other conditions).

The consideration payable is GBP 5.5m (USD 7.28m), in cash and shares. GBP 5m payable in cash.
Conditional on the consideration shares being allotted, the ResponseSource sellers shall enter into lock-in agreements, pursuant to which each ResponseSource seller undertakes to not dispose of any consideration shares for a period of 12 months after completion and for a further 12 months period to only dispose of any consideration shares in accordance with orderly market principles, save in certain limited circumstances.
ResponseSource, a Software as a Service business providing online intelligence to PR, marketing and journalism professionals, was founded in 1997 by Daryl Willcox, a former journalist, who utilised his understanding of UK journalist and PR networks to deliver innovative online services via flexible online platforms that serve the PR community.

ResponseSource's most significant product offering, The Journalist Enquiry Service delivers enquiries from journalists to PR professionals and is a complementary product to Vuelio's existing suite of services.

The ResponseSource acquisition will fulfil a current need and longer term strategic aim to strengthen its service to the journalist and PR sectors by improving Access Intelligence's media data and press release wire offering, as well as providing major upsell opportunities for core Vuelio services to an additional client base of approximately 1,900 customers.
In the year ended 31 December 2017 ResponseSource achieved an unaudited profit before tax of GBP 0.3m on a revenue of GBP 3.1m and had net assets of GBP 555,000 as at 31 December 2017.

Based on the unaudited results for the year ended 31 December 2017, 93% of the revenue was recurring and the revenue for that year showed a 13% growth over the previous year.
ResponseSource has also continued to grow during the 2018 financial year, with monthly recurring revenue increasing 11% to GBP 277,000 between August 2017 and August 2018.
The directors believe that the opportunity to acquire a highly complementary SaaS business in the communications market will be earnings enhancing in the first full year.
Date Published: 12/10/2018
Target: ResponseSource Ltd
Country: UK
Deal Size: 7.28m (USD)
Sector: Advertising/PR
Type: Corporate acquisition
Financing: Cash and Stock
Status: Agreed
Buyer: Access Intelligence