ENERO GROUP LIMITED — M&A Activity 2016

Sep 29, 2016

30 September 2016

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ASX ANNOUNCEMENT

Enero Group acquires Eastwick Communications to strengthen Hotwire PR in the USA

Enero Group Limited (ASX: EGG) today announced the acquisition of the highly regarded independent technology public relations agency, Eastwick Communications (Eastwick) by its wholly owned subsidiary Hotwire Public Relations (Hotwire).

Eastwick is an award-winning agency that has been at the heart of Silicon Valley for 25 years, and more recently has opened an office in New York. Eastwick has an enviable client portfolio providing creative communications solutions to some of the best known global technology brands.

Hotwire, founded in 2000, has long been considered a leader in the technology space, especially within Europe, and was most recently named the CIPR’s “Outstanding Large Agency of the Year” for a second consecutive year in the UK.

Effective immediately, the business operations of Eastwick and Hotwire’s US offices will operate under the Hotwire brand, strengthening Hotwire’s offering and capabilities in the US. Barbara Bates, one of the original founders of Eastwick, will take up the role of CEO, Hotwire North America.

Matthew Melhuish, Enero Group CEO, said, “Enero’s first acquisition in seven years re-affirms Enero’s growth strategy for the US market through building our presence and scale in the higher margin sector of public relations. The merger of the Eastwick and Hotwire teams in the US will allow us to provide clients with a more exciting and expansive offering in this region. Eastwick’s reputation, along with similar values and ambitions to the rest of the wider group network, made this a compelling opportunity for capital deployment.”

Brendon Craigie, Hotwire Group CEO, said, “The combination of the Hotwire and Eastwick businesses in the US ensures Hotwire can offer global clients a genuine alternative to behemoth multi-nationals. Together, we combine the reach and expertise of a large multi-national with the service ethos and deep connections that only a local agency can deliver. We are focused on helping clients seize the global digital and technology opportunity before them, while working toward our vision to build the best agency you’ll ever work with.”

Eastwick CEO and Co-founder, Barbara Bates, said, “The deal provides both Hotwire and Eastwick clients, employees and partners a significant opportunity for growth. It exposes them to a fantastic global network of professionals, which will allow us to support our clients’ growth ambitions across Europe and the Asia Pacific region. Both Hotwire and Eastwick have been unofficial partners for years and share common values, culture and expertise. We are very pleased to join the Enero Group, who we see as a great future partner to our joint growth plans.”

The purchase price comprises an initial cash payment of US$5 million plus deferred payments tied to performance targets over the next four years. The initial payment was funded from Enero’s existing cash reserves. Over the next 12 months, the acquisition of Eastwick is expected to be accretive to Enero’s earnings per share.

Contact:

Brendan York Group Finance Director +61 2 8213 3084

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