Tangent Communications, the parent company of London Digital Printing Group, has engineered a reverse takeover of Documedia that will result in the formation of an 8m turnover marketing services business.

Documedia will issue 55m new shares to acquire Tangent, while London Digital will bring 500,000 in free cash to the table.

Documedia is listed on AIM, and its shares leapt 70% to 9.99p after the deal was announced last Thursday (16 June).

The enlarged company will retain the AIM listing and be renamed Tangent Communications plc. It will be headed by joint chief executives Nick and Tim Green, currently directors at London Digital.

The London Digital operation will be relocated to Documedia's 1,115m2 facility at Old Street.

Documedia chairman Warren Tayler will step down once the deal is finalised. Managing director Mark O'Connor relinquished his role last month, and was replaced by marketing director James Marsland.

Nick Green described Documedia as a "hidden jewel". "Tim and I have looked at a number of opportunities over the past three years, and we've always had Documedia on our radar screen," he said.
"James Marsland has created a fantastic collateral management solution and 15,000 people up and down the country are using their technology. We really like it and it's a great fit."

Green aims to grow market share significantly and believes the combined business will offer more output variants than any other. "I'm not aware of any company in the UK that has more diversified services," he stated.

Documedia uses Xeikon digital presses and HP large-format ink-jets, while London Digital majors on HP Indigo with Durst Lambda large-format photographic imaging.

"This is an acquisition for growth, and is about creating a strong, profitable and exciting business. It's stage one in our plan for building Tangent Communications," Green added.

Michael Green, the former chairman of Carlton Communications and uncle of Nick and Tim Green, owned London Digital parent Tangent. He will become a major shareholder in the new venture but will not have an executive role.

The deal is subject to shareholder approval at an EGM next month.

Story by Jo Francis