Lloyd Northover Citigate’s international expansion plans will be speeded up through the reverse takeover by its holding group Citigate Communications of a listed company.
Citigate’s entire share capital has been acquired by Incepta Group, a small quoted sales promotion and direct marketing company. The reverse takeover values Citigate at 26.6m.
The deal “will make no difference to the way LNC is managed and operated”, says consultancy vice-chairman Jim Northover, and there will be no job losses.
The other Citigate companies with design offers – Burnside Citigate, Citigate Albert Frank, Dunseath Citigate and Citigate South Africa – will not be directly affected by the deal either.
LNC’s intention to expand internationally – through both acquisitions and start ups – will be speeded up now that LNC has access to further capital through the stock market listing, adds Northover.
News of LNC’s expansion plans into the US will be announced after Christmas, he adds.
Citigate’s chief executive David Wright and group finance director Kevin Steeds will hold similar positions in the enlarged group. Wright says of possible expansion of the group’s UK design interests: “If the right deal came along… we would seriously consider it.”
Lloyd Northover became part of Citigate Communications when it merged with Citigate Design (DW 7 January 1994).
Citigate will be part of the listed company, which will retain the name Incepta Group, from 3 March 1997.