Snowball was founded in 2003 and provides customer management services to its clients, helping them to retain their existing customers by driving increased loyalty, retention and frequency. And further it works with its clients to identify and target relevant new customers through data insight. Through these services the company is able to demonstrate clear return on investment to its clients.

In 2008, the businesses acquired generated an adjusted proforma profit before tax and interest of £878k from revenues of £2.27m.

Clients include Bang & Olufsen, Dunhill, Hulsta, Meridian and Trailfinders.

Combining the business with Tangent’s offering will increase the range of services available to all group clients spanning data, creative, campaign execution and analysis of both on and off line channels. This will position Tangent in a unique position in the market place at a critical time when businesses are seeking clear returns on investment. Additional benefits include the potential to consolidate existing print work generated by Snowball clients in to Tangent’s Newcastle facility.

The acquisition is expected to be earnings enhancing for Tangent in the first year post acquisition. (1)

Financial Highlights

- Initial consideration of £1.03m in cash funded from existing resources;

- Maximum further consideration of £2.18m in a combination of cash and shares subject to the acquired business meeting EBIT targets over three years; and

- All shares locked in for between 3 to 5 years

Nicholas Green, Joint Chief Executive, said: “The Snowball acquisition will transform Tangent’s skills in this area whilst opening up a completely new sales channel to Snowball’s own client base. The enlarged business will be uniquely placed to offer clients the range of services linking data, strategy, creative to execution, all underpinned by our proprietary technology platform.

“We will still retain £750k of net cash following payment of the initial consideration and are seeing more strategic opportunities arise which we continue to consider.”

Damian Bentley, Snowball Managing Director said: “This partnership with Tangent provides some excellent opportunities for the further development of the Snowball proposition, and brings new benefits for our clients.

“We founded our company sure of our convictions that changing behaviour through data-driven communications is the way forward. Joining up with a business such as Tangent means that we can take our skills with data into new areas, strengthening our digital credentials and increasing our creative capacity to broaden our offering to both existing and prospective clients.“