Entertainment company Vividthree Holdings OMK has entered into a definitive conditional sale and purchase agreement to acquire a 30% stake in public relations agency Elliot Communications (Elliott & Co) for $775,393 in cash.
The deal is expected to be completed by April 30, says Vividthree in a March 27 press release.
The agreement also details a call option agreement with Elliot & Co, allowing Vividthree to acquire a further 21% stake for at least $1.98 million should Elliot & Co achieve a net profit of not less than $0.90 million between FY2023 and FY2025.
Upon exercising the call option, the company will have an interest in 51% of Elliot & Co’s issued and paid-up share capital.
Elliot & Co was named one of the top 40 PR agencies in the Asia-Pacific region by PRWeek in 2021. They have served over 1,000 companies, including CapitaLand, Diageo and Singapura Finance. Since its inception in 2016, the company has grown to establish offices in Singapore, Malaysia and Indonesia.
According to Vividthree, the acquisition of Elliot & Co complements Vividthree’s core business of digital content production and is in line with its ambition to expand its footprint in the communications industry. “The partnership will also enable the group to leverage its network and expertise to enter new markets and capitalise on emerging opportunities in Southeast Asia.”
Jonathan Zhang, chief executive officer of Vividthree, says: “Our partnership with Elliot & Co will broaden our portfolio of services and reinforce our presence in the APAC region. With this acquisition, we are well positioned to enhance our reputation and build stronger relationships with stakeholders, which will drive value for our shareholders and enable us to better serve our clients.”
Founder of Elliot & Co, Jeremy Foo, says: “By combining our expertise in media engagement with Vividthree's proven leadership in content production, we are now able to offer our customers with a comprehensive suite of content management and communications services, providing us with a competitive edge as we move into 2023 and beyond. We are excited to further integrate our services and offer our clients new ways to thrive in this digital era.”
Shares in Vividthree closed flat at 3.6 cents on March 27.
