Investors appear underwhelmed by events and business information firm Centaur Media's (CAU) capture of marketing consultancy Oystercatchers.
The shares are down 1.1% to 44.25p but although the deal is modest at £3.35 million (75% cash, 25% equity) the market may have missed a trick as the earnings impact is material. Investec lifts its 2017 earnings per share forecast 7% to reflect the standalone contribution from the business and notes its strong client base offers a cross-selling opportunity for Centaur's existing Econsultancy division.
The broker also lifts its sum-of-the-parts derived price target from 60p to 65p.
Oystercatchers helps clients boost marketing performance. Around two thirds of its revenue is believed to come from helping brands run a pitch, 15% from the 'Oystercatchers club' (a networking event for ad agency executives and brand marketing officers) and the remainder from taking brands into new areas. British Airways, McDonalds (MCD:NYSE) and Tesco (TSCO) are all on its roster.
Centaur is next due to update on group trading on 13 October.
