Alterian in US takeover

01/09/2010 Robert Tyerman

Specialist marketing technology group Alterian has bought social media analytics concern Intrepid Consultants for up to $11.5 million (£7.4 million).

The fully-listed company is paying an initial $3.5 million in cash and shares at 179.4p for Intrepid, which integrates social media data as 'a core element of mainstream marketing', with offices in Seattle and London and a fast-growing (and inexpensive) analytics team in Ho Chi Minh City, Vietnam.

Alterian will pay another $7.5 million if Intrepid, which made £300,000 pre-tax last year, meets certain revenue targets by 2013, plus $650,000 (£416,000) in bonuses to key people. John Song, founder and chief executive officer of Intrepid, is among those staying on and suggests the deal 'will have a positive effect on all Alterian's business lines'.

Commenting that the current 'explosion of social media' is catching many brands without the in-house skills to use the relevant analytics to their best effect, Alterian's chief executive officer David Eldridge argues adding Intrepid to Alterian's portfolio 'strengthens our leadership position in social media marketing'. He also hints the 'rich pool of language skills' at Intrepid's Ho Chi Minh City research centre will 'further enhance our offerings in the important Asia Pacific region'.

Highlighted by Growth Company Investor at 105p last year, Alterian shares have now reached 199p, up 12p this morning. They should have further to go over the medium term.