Digital marketing company Be Heard has conditionally agreed to acquire MMT Digital for up to £20.5m.
If approved by shareholders, Be Heard would pay an initial £5.1m for the design, build and user experience agency. And an additional £15.4m could be paid subject to performance.
Be Heard announced a temporary suspension of trading on the alternative investment market (Aim) today until early April when it is hoped the deal's admission document will be published.
This announcement follows Be Heard’s acquisition of Agenda21 in November last year for an initial £3.3m. A further £8.6m could be paid over the next three years subject to performance.
Founded in 1999, MMT Digital reported an underlying profit before tax of £1.1m in the year to March 2015.
Be Heard’s initial payment will be made up of 65 per cent cash and 35 per cent issue of new ordinary shares in the company.
Executive chairman Peter Scott, the former chief executive of Aegis, said: "The acquisition of MMT Digital is our second step towards Be Heard's ambition of forging an agile, interconnected digital marketing group.
“MMT Digital's award-winning team devise and create first-class websites and applications, delivering exceptional digital experiences for brands. Their skills and capabilities will become an integral part of our client offering.”