International public relations group Financial Dynamics (FD) has agreed to acquire K-Capital Source, a Dublin-based company that specialises in investor relations. Ciarán Hancock, Business Affairs Correspondent, reports.
No price was disclosed by either side but industry sources suggested that FD could be paying €5-8 million for the business, including so-called earn-out payments.
K-Capital Source was founded in 2003 by Mark Kenny and Johnathan Neilan, who both previously worked for the Smurfit paper and packaging group.
It has six employees and is believed to have achieved revenues in 2007 of about €3 million.
It is understood that Mr Kenny and Mr Neilan have agreed to a three-year earn-out period. FD is expected to retain the K-Capital Source brand for the medium term and the company will remain its Ballsbridge base.
K-Capital Source has 20 clients, including public companies Aer Lingus, C&C, Independent News & Media, Smurfit Kappa, Iona Technologies and United Drug.
Its clients also include financier Derek Quinlan and his investment vehicle Quinlan Private and Clare-born entrepreneur Dómhnal Slattery, who has a range of business interests, including JetBird, Blue Ocean Wireless and Claret Capital.
It was advised by Maples and Calder.
FD is one of Ireland's leading consumer and corporate PR agencies. Headed by Paul McSharry, it is the Irish member of a group with offices across the world.
FD's Irish clients include Vodafone, AIB Corporate Finance, Setanta Sports, Airtricity, Xerox and property group Oceanico.
FD is part of FTI Consulting, a company listing on the New York stock market.
Mr McSharry said the acquisition of K-Capital would enable FD to offer its clients "a complete range of communications services".
