Llorente y Cuenca (LLYC) has sold its 80% stake in the company BAM (Rebecca Bamberger Works Inc.), a communications agency based in San Diego, California (United States), specialized in services to startups backed by ‘venture capital’, a its founder Rebeca Bamberger.
The operation has been closed by a total amount of 9 million dollars (8.64 million euros at the current exchange rate), which allows LLYC to fully recover the initial payment of 6.4 million dollars (6.14 million euros), made in March 2023, as well as the costs associated with the transaction. Then, the purchase and sale agreement valued 100% of BAM at 13.2 million dollars (12.2 million euros). Now, the valuation is lowered to 11.25 million dollars (10.8 million euros).
The agreed price includes an initial cash payment of $2.5 million, which has already been made, and quarterly payments of $150,000 plus interest (calculated at US Federal Interest – currently at 4.75% + 1.5% spread) until December 2030 and a one-time payment of $3.05 million plus interest before December 31, 2030.
The agreement is subject to judicial surveillance (‘stipulated judgment’) that ensures compliance with the agreed terms. In the event of non-compliance, LLYC may demand a total amount of 10.6 million dollars (10.18 million euros).
As part of the agreement, LLYC withdraws from the legal actions taken a few months ago against Rebecca Bamberger and his team. As a consequence, BAM was excluded from the consolidation scope in the financial statements for the first half of 2024 and reclassified in its balance sheet as “non-current assets held for sale.” In 2023, it brought in $5.1 million in revenue.
“The sale of BAM does not affect LLYC’s operations in the United States, its second most important market after Spain, nor its growth plans in the country,” says the Spanish communication agency in a statement to the market. Not in vain, LLYC has continued to strengthen its presence in the United States through the integration of Lambert by LLYC, acquired on February 16, 2024. Lambert has been unified under a new management structure, and Lambert by LLYC is expected to contribute a turnover close to to 18 million dollars in 2024, consolidating the United States as the second most important region by volume within the group.
#LLYC #sells #American #company #BAM #founder #settles #legal #disputes
