By PrintAction Staff
By PrintAction Staff
DATA Communications Management (DCM) has entered into an agreement to acquire privately-held Perennial Group of Companies for a total purchase price of roughly $12 million. DCM has arranged a $12-million non-revolving term loan facility, of which $7 million will be used to fund the upfront cash component of the acquisition.
With offices in Toronto and Bolton, Ont., The Perennial Group’s suite of services includes business and brand strategy, consumer insights, environmental and graphic design, and communications and retail operations design and strategy. The acquisition includes Perennial Inc., a design firm focused on creating and delivering design strategies for retail brands, and The Finished Line Studios Inc., an independent, multi-function creative, execution and production art studio.
Chris Lund, President and CEO of the Perennial Group, will assume the role of Chief Creative and Innovation Officer of DCM. Kevin Lund, Managing Director of Global Retail Programs for Perennial, will become Senior Vice President, Chief Brand Officer of DCM. George Athanasiou, Managing Director, The Finished Line, will become Vice President, Digital Product Innovation and Development of DCM.
“We see a tremendous opportunity to leverage DCM’s size and scale to assist our clients in executing the delivery of their brand promise to their customers as well as to help drive improved customer engagement strategies for DCM’s top clients with our capabilities,” Lund said.
Closing is expected to occur on or about May 7, 2018, subject to customary conditions.
The $12-million purchase price is comprised of $7 million payable in cash on closing, $2.5 million through the issuance of common shares of DCM and $2.5 million in the form of a subordinated, unsecured non-interest bearing vendor take back note, with $1 million payable on the first anniversary of closing, $1 million on the second anniversary of closing and $0.5 million on the third anniversary of closing. The purchase price will be subject to certain customary working capital and other closing adjustments.
A provider of business communication solutions, DCM’s core capabilities include direct marketing, print services, labels and asset tracking, event tickets and gift cards, logistics and fulfilment, content and workflow management, data management and analytics, and regulatory communications. It operates more than 20 locations, including six centres of excellence, across the country.
“Our customers are dealing with a fundamental shift in their businesses as their customers are becoming more knowledgeable and enhancing the customer experience is becoming critical to their own competitive success,” said Gregory J. Cochrane, President of DCM. “Perennial’s insights will enable us to play a much more strategic role in helping them get closer to their customers, whether it be offline or online, in store or remote, tactile or digital.”