SYDNEY: Photon Group has reportedly secured an earn-out agreement with Naked Communications that will help the troubled marketing services group launch a capital raising to secure its future.
It is understood that Naked's 36 shareholders agreed to a new deal on Monday night, following weeks of talks.
Photon announced to the Australian Securities Exchange (ASX) on Friday that it was locked in negotiations with agencies over a proposal to persuade them to accept new earn-out agreements based on the performance of the group, rather than individual agencies.
It is believed Photon ad agencies BMF and BWM had already accepted the restructured deal, but London-based Naked had proved to be a stumbling block.
Australia's biggest marketing services group acquired Naked for $36.7 million in February 2008, bringing a $200 million acquisition spree to an end, which has burdened the group with costly earn-out obligations.
Photon's newly installed chief executive Jeremy Philips is leading the restructuring of the group and is believed to be now turning his attention to a handful of smaller Photon businesses, which have yet to sign revised earn-out deals.
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