Hasgrove to sell Amaze business

Hasgrove has confirmed that it is to sell its marketing and technology subsidiary Amaze to St Ives Marketing Services.

Hasgrove, a wide-reaching communications and business strategy services provider, will sell Amaze for a total of around £25 million. This sum will be spread across an initial payment of £15.3 million, which is to include a £1.8 million repayment of intercompany debt. A further payment of £9.7 million will then be handed over at a later date once the business has achieved set profit targets in the year to 31 December 2013. All of the deal is subject to the approval of shareholders but it is set to go ahead.

The business seller has noted that Amaze requires a partner with the ability to increase investment in the company in order to boost its profits. At the moment its owner was unable to do this and had been turning down new business opportunities due to a lack of resources.

Amaze was founded in 1997 and posted revenues of £17.3 million in the year to 31 December 2012, while its operating profits before management recharges were £1.7 million.

St Ives is set to operate Amaze as a subsidiary and will manage it from its existing locations through the current team of staff.

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