The Hindu Business Line : IMSG acquires 66 pc in Candid Marketing

International Marketing and Sales Group Plc (IMSG) has acquired a 66 per cent stake in Candid Marketing, a marketing services company, for $3.6 million. The company, which is listed on the London Stock Exchange, said it would acquire the remaining 34 per cent stake by 2010. "The final acquisition of the remaining shares will take place in 2010, the consideration to be linked to the enterprise value of the company then," said Mr Gregory Thain, Chairman and CEO, IMSG. In all, the company will purchase Candid's entire issued share capital in two tranches for a total consideration of approximately $5.6 million.

Candid's founders, Mr Samarjit Singh and Mr Atul Nath, would continue as executive directors, along with three directors to be appointed by IMSG, post-acquisition. Mr Thain will join the Board of the company as chairman.

Eyeing other acquisitions

IMSG intends to use this acquisition as a platform for expanding its operations in the country and would explore further acquisition opportunities in the region.

"We are eyeing further acquisitions in the Internet domain, market research and public relations companies," said Mr Thain.

According to the company, Candid would serve as a base for IMSG to introduce its products such as key account merchandising (an outsourced sales service that enables suppliers to share costs of their retail operations) and a business training programme, Storewars, in the country.

Candid's clients include ITC Foods, Pepsi, Cadbury's and Nokia. The company clocked a turnover of around Rs 12-15 crore during the last financial year, registering a 60 per cent growth over the previous year. Currently, over 75 per cent of its revenues are generated from repeat business.

IMSG hopes to achieve a turnover worth $50 million from its Indian operations in the next four years, Mr Thain said. He expects Candid to grow into a $25-30 million business in four years.

Candid too is on an expansion mode. According to Mr Nath, its Chief Executive Officer, "We plan to set up 10-12 offices by the end of this financial year." Currently, Candid operates its marketing and sales programmes through its seven offices in six cities.

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