July 28, 2010

OMG reassures affiliates over Crayon takeover of Acquity

by Brian Turner

Affiliate portal OMG has sought to reassure affiliates that they should not lose out on commissions, after one of their advertisers, Acquity, was bought out by Crayon.

The issue arises after Acquity were forced into liquidation last month, after HMRC slammed a retroactive VAT demand on the company.

Richard Davis, managing directoy of Acquity, stated that the 20 year old company was more than profitable, filing net profit of nearly a half million pounds for 2008 on revenues of £23 million. However, the board took the decision that the demand from HMRC made the company technically insolvent – resulting in no tax being paid for the demand anyway.

It’s certainly not the first time the HMRC has sought to kill a company and gain nothing – and sadly we doubt it’s the last.

According to a statement from OMG, “[Acquity] were placed into administration as a result of HMRC changing the rules – essentially there was an established practice within the industry allowing VAT mitigation on DM – despite multiple audits they decided to retrospectively bill Acquity – Acquity entered administration fully solvent bar VAT”

Acquity’s assets have now been bought out by Crayon, and now trades under the name of Acquity Customer Insight Ltd.

According to OMG, all oustanding affiliate sales will be honoured by the new owner.

Simon Wood, Online Marketing Manager for Hiscox, released the following statement through OMG: “Following the recent acquisition of Acquity by Crayon, I want to make it absolutely clear that this will have very little impact on performance of our affiliate activity. The current management of the programme with OMG and each individual affiliate will continue to be managed effectively through Acquity Customer Insight and I very much see this as an exciting opportunity to grow the programme in the coming months. Acquity Customer Insight are totally committed to making this work for all parties.” Simon Wood, Online Marketing Manager, Hiscox”

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