Motivcom Plc has boosted its conference and incentive travel division with the acquisition of Motivation Travel Management (MTM) in a deal worth up to £1.5m.
The marketing services group said it plans to merge MTM with its Archer Young subsidiary by the end of the year. The newly formed company will be re-branded AYMTM and absorbed into Motivcom’s P&MM Incentive Travel Conferences & Events division.
John Derrick, chairman and managing director of MTM, will become managing director of the new business, reporting to Motivcom board director Nigel Cooper.
“This is a fantastic opportunity to strengthen our commitment in this market by creating a major new business to operate alongside our P&MM travel and events division,” said Cooper.
Derrick added: “The two teams have vast combined experience and there is excellent synergy between them. Brought together, AYMTM will be a major new strategic force offering the clients of both companies the benefit of the whole range of products and services that each currently provide.”
Motivcom paid an initial cash consideration of £860,000 for MTM, rising to £1.5m based on the performance of the business over the next two years.
It anticipates the merger of MTM and Archer Young will create cost savings and synergy benefits that will flow into the merged AYMTM business from as early as January 2008.
MTM had net liabilities of approximately £85,000 and a profit before tax of approximately £74,000 for the year ended 31 December 2006. It is anticipated that MTM will enhance Motivcom’s earnings for the year ending 31 December 2008.
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