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A listed digital marketing specialist has acquired a rival in a deal worth more than £5 million, as part of its acquisition strategy.

Tangent Communications plc has bought Newcastle-based Ravensworth Digital Services for £5.84 million in cash and shares. It is also assuming Ravensworth’s debt of £850,000.

To pay for the cash consideration, Tangent placed 46.6 million shares at 13p each on AIM to raise £6.06 million.

The acquisition is expected to be earnings enhancing in its first year. Tangent’s chief executive Nicholas Green said: “Our acquisition of Ravensworth is an important step in our progressive acquisition strategy. By combining our technical expertise with Ravensworth’s modern digital plant with significant capacity in Newcastle, we will create considerable revenue and operational synergies.”

Following the deal, Paul Murray – a non-executive director of market research firm Taylor Nelson Sofres plc and digital video technologies provider Thomson S.A. – is joining Tangent as a non-executive director.

Ravensworth specialises in digital services for UK-based estate agents. It made a turnover of some £6.9 million and an operating profit of about £1.1 million for the year ended December 21, 2006.

London-based Tangent supplies technology that creates direct marketing programmes for clients including Sainsbury’s and Greene King. It reported a turnover of £6.61 million and an operating profit of £626,000 for the year to February 28, 2006.

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