Elixirr acquires British marketing firm Coast Digital

Elixirr will pay an initial cash consideration of £2.2m for Coast, as well as issuing 444,752 ordinary shares in the company.

The AIM-listed group added that further potential earn-out payments in new ordinary shares totalling £400,000 were contingent on Coast achieving underlying earnings targets in 2021 and 2022, while an additional cash payment will also be made based on the working capital of the business at the time of completion.

Elixirr said it opted to snap up Coast in order to extend its existing digital capabilities in order to offer a full-service digital capability to clients and expects the acquisition to be immediately earnings enhancing.

Chief executive Stephen Newton said: "As our first acquisition post-IPO, today's announcement marks the next step in our ambitious growth plans and enables us to support clients in all aspects of digital - something more important than ever in the current market.

"Coast Digital's expertise will be highly complementary to the quality service Den Creative already provides and their capabilities will be hugely beneficial to many of Elixirr's clients, while our strategy and innovation-led approach has the potential to assist Coast Digital's clients on broader strategic topics."

As of 0920 GMT, Elixirr shares were up 0.40% at 250.0p.