Pavilion Communication Services has joined Pan European communications and marketing group Hasgrove and in doing so has strengthened the group’s digital marketing capabilities.

In a separate deal Hasgrove has also acquired Altrincham based Odyssey Interactive, a leading provider of intranet solutions in the UK.

Headquartered in Manchester, with offices in London and northern Europe Hasgrove now employs over 250 people. Today’s announcement is in line with the company’s strategy to acquire and develop a comprehensive portfolio of brand leaders in high growth areas.

Pavilion founders Gerry and Vikki Ashton will become non-executive directors while Liane Grimshaw will run the business as managing director. Hasgrove chief executive Rod Hyde will join the board along with Nick Bradshaw, chief executive of Connectpoint Group who sits on the Hasgrove operational board.

Liane Grimshaw, managing director of Pavilion said: “This deal enables us to accelerate our plans for European expansion by tapping into the strength and size of the group.

“The team and I see this as a great opportunity to further build on the solid platform for growth we have delivered over the last two years, and we are all extremely excited about the road ahead.”

Hasgrove chief executive, Rod Hyde said: “This acquisition gives the group a strong digital focus. Pavilion is an extremely successful in its own right but will also benefit further from being part of the group.

”We are committed to ensuring that all our companies have a digital capacity. Today’s announcement will support this process and also provide the resource that will allow group companies to offer truly integrated solutions.

“We now have the market position, brands and resources required to develop all our businesses both organically and by selective acquisitions in our target markets. Our acquisition programme is progressing well and we have identified a number of possible companies to acquire which would bring further scale and synergies across the Group.”

Pavilion offers skills across strategy, creative, media and technology with a portfolio of services that include the design and development of websites and web-based technologies, online advertising, email marketing, search engine marketing and analytics. Pavilion has also developed its own intellectual property including a content management system and a digital signage solution that is used in over 1700 Co-op stores in the UK.

Pavilion has recently ramped up its resource, with 5 new appointments made in the last few months alone, to meet growing demand from existing clients and new business success. In September 2006 Pavilion was appointed as the lead agency globally for Siemens Enterprise Communications for whom it now drives a digitally focused marketing strategy across the core markets of the UK, US and Germany, working alongside local agencies on implementation.

In order to develop its integration, Hasgrove is planning a move in early 2008 which will bring together many of its Manchester based companies under one roof.

Publishing its interim results today for the six months to 30 June 2007 showed Hasgrove revenue jump to £10.1m (four months to 30 June 2006: £4.7m), with headline profit before tax up to £1.2m (2006: £0.5m) and headline basic EPS up to 4.6p (2006: 3.1p).

Notes:
Hasgrove was set up in October 2004 and two years later floated on the Alternative Investment Market.
It operates three business units: Public Affairs & Corporate Communications, Design and Marketing Services
Connectpoint specialises in advertising, public relations and digital services.
The Chase is a leading UK design agency.
Interel is a leading continental European communications consultancy specialising in corporate communications, European public affairs, Governmental relations and brand marketing communications. The Group acquired Cabinet Stewart, leading EU Public Affairs consultancy in February 2007

For Further information please contact:
Liane Grimshaw
Managing Director
Telephone : 01625 540 200

Published on: 12:00AM on 29th September 2007