Investor's Champion Blog
Provides refreshingly forthright, independent comment on predominantly small cap companies and specialist investment funds. Informed opinion, based on first-hand research, but pulls no punches in exposing management weaknesses.

Pixel Interactive Media - bulking up

Pixel Interactive Media a business I commented on back at the beginning of February announced that it had agreed to acquire Chinese online affiliate marketing business Easy Growth (I suppose growth is easy if you are a Chinese business)

The acquisition will apparently give Pixel exposure to the fast growing Chinese online advertising and marketing industry and access to Easy Growth's strong customer base and will be immediately earnings enhancing.

The total consideration will be calculated at up to five times Easy Growth's profit after tax for the year to 31 December 2007. If the numbers re reliable, even for a Chinese business this appears to be reasonable. Furthermore, the initial cash consideration of approximately US$1.9 million is payable in stages during 2007 subject to quarterly performance milestones- I’m not sure what these are.

Anyway, following on from my previous note they are at least starting to bulk up the business a bit.


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