The board of Directors of Chime Communications, the UK-based sports marketing and communications firm, has approved a $585 Million cash offer from Providence Equity Partners and WPP to acquire the company. The price is a one-third premium over the publicly traded company’s stock value as of the close of trading July 29.
The deal is subject to regulatory and Chime shareholder approval. Providence is setting up an entity called “Bidco” to execute the transaction. WPP is shifting its shares representing a 20% stake in Chime back to the company in exchange for a similar stake in Bidco.
Word that the companies were in acquisition talks broke Wednesday and Chime confirmed that the pending deal had been reached today.
Chime is a communications and sports marketing group that includes CSM Sport & Entertainment, the ad/marketing shop VCCP Partnership, and healthcare marketer OPEN Health.
Commenting on the offer the chairman of Chime, Lord Davies of Abersoch, said that while the company has made great strides as an independent firm, “significant new capital is required” to fulfill the company’s growth potential. He added that both the funding and industry expertise offered by Providence and WPP will “fast-track our ambitions to build a full scale, global sports marketing and communications business.”
Chime’s independent directors approved the deal unanimously after being advised on the offer by Moelis & Company and HSBC.