International recruitment firm Empresaria (EMR: AIM) announced that it has acquired a 75% stake in UK-based recruitment firm Ball and Hoolahan Limited, which specialises in serving the marketing industry.

The consideration of up to £1.5 million comprises an initial cash payment of £1 million, with an earn-out up to a maximum value of £500,000, contingent on the performance of Ball and Hoolahan for the financial year ended 31 March 2015.

In the year ended 31 March 2014, Ball and Hoolahan generated revenue of £1.8 million.

The acquisition is expected to be immediately earnings accretive. Ball and Hoolahan's Managing Director, Roy Hoolahan, will retain a 25% interest in the business and continue to manage the business going forward.

According to the announcement from Empresaria: “Ball and Hoolahan, which has been operating for 25 years, focuses on servicing the corporate marketplace working with a range of leading brands in the UK and Europe. It will be a complementary addition to Empresaria's Become group of companies, which specialises in the Creative, Media, and Digital sectors.”

“The Become group currently operates out of offices in London, Manchester, Sydney, Melbourne, and Hong Kong; and focuses on providing permanent and freelance staff to predominantly advertising, design, media and digital agencies.”

Joost Kreulen, CEO of Empresaria, said: "I am delighted that Ball and Hoolahan, a well-established business that has an unrivalled reputation within the marketing recruitment sector, has joined the Group. This investment is in line with our ongoing strategy of developing leading brands within the sectors in which we operate. We believe there is a great opportunity to replicate their success in the UK within our network both in the UK and overseas."

Following the acquisition announcement, the company’s share price rose by +1.1% to £0.45, an increase of +22.3% compared with last year. Based on its current share price, the company has a market value of £20.3 million.