It has been acquired by AIM-listed direct marketing and communication specialist Real Affinity for £590,000 in 27.7m new ordinary shares.
In addition, deferred consideration of up to a maximum of £4.3m, also to be satisfied by the issue of new ordinary shares, may be payable in two tranches in 2004 and 2005, depending on performance.
Navigator, established in 2000, advises clients on investing in sport as part of an overall marketing strategy and on how to maximise the benefits of brand association within sport. Clients have included Puma, Umbro, Sage, Fox Kids TV Europe and institutions ranging from the English Schools FA to the Institute of Thai Culture. It is currently tendering for projects in a variety of sports ranging from sailing and motorsport to golf and athletics.
Revenues are generated from consultancy and project fees. Over the last three years Navigator has increased turnover from £90,000 to £410,000 and further to £520,000 in the six months ended 30 September 2003.
Said Mark Richardson, chief executive of Real Affinity: “Navigator is in an exciting and fast growing field of marketing which we believe offers real scope for growth. It has a good reputation, an international network of affiliates and an extremely experienced and well-known management team.”
Among them is Glen Kirton, a figure well-known, and well-respected, throughout the industry. He was tournament director of UEFA Euro 96 tournament in England and went on to head up ISL’s football division, marketing the World Cup and other FIFA properties.
Adds Richardson: “Navigator’s innovative ideas in using sport as an integral brand and consumer marketing tool compliment our own business and take us into a new market area. This is great news for us as the global sports marketing industry, excluding sales of sportswear and major TV rights, is thought to be worth £25bn a year. The UK market accounts for around £2bn, of which Navigator believes its target market is worth around £750m.”
Navigator chief executive Gerard Corcoran joins the board of the enlarged group.
Real Affinity has also undertaken a placing of 104m new ordinary shares at 1.25p per share to raise approximately £1.3m (before expenses).
These funds will be used to mount an extensive publicity campaign to raise the profile of Navigator, for the appointment of additional staff, investment in IT equipment and to provide additional working capital for the enlarged group. The placing has been fully underwritten by Seymour Pierce.
Both the acquisition and the placing are conditional on shareholder approval, and this is to be sought at an EGM of the company on February 2.
