Marketing services provider Communisis has paid £2.25m for the trade and assets of Orchestra Bristol Limited, which is currently in administration.
OBL is a marketing services operation whose main business involves marketing communication and transactional mailing to support the issuing of around 25m TV licences annually, including some associated with online new channel activity. The contract term has four years left to run and has an estimated annual sales value to Communisis of £4.5m. The contract is with Proximity London, a BBC contractor, which has sub-contracted the work to OBL – and has now agreed Communisis can assume responsibility.
As part of today’s agreements, Communisis says it will also be able to work with other valuable OBL customers which have similar specialist requirements. In addition, Communisis will be working with Proximity on a range of new business development opportunities.
Communisis chief executive Andy Blundell said he was pleased to "have been entrusted with the contract for TV licensing, which by its mission-critical nature plays to Communisis’ strengths as the leading provider in our sector. I am also excited to be working in partnership with Proximity and look forward to working closely with them; both companies recognise the power of data analytics and consequent targeted communication".
OBL recorded profits before tax of £700,000 in the year to December 31, 2009, with gross assets of £4.4m. In addition to the principal contract, the book value of gross assets being acquired by Communisis is £400,000.
