16th Jul 2021 10:03
(Alliance News) - Ascential PLC on Friday said its acquisition of a majority stake in digital content company ASR Group Holdings LLC will further expand its e-commerce business.
The London-based data and analytics company said it bought the 51% stake in Columbus, Ohio-based ASR for an initial cash consideration of USD122 million.
Depending on pre-agreed earnings targets, the firm has options to acquire two remaining 24.5% stakes in ASR between July 2022 and June 2025.
Ascential plans to incorporate ASR's digital content business - which allows brands to grow sales through online marketplaces - into its pre-existing information, data and e-commerce optimisation business.
"ASR's leadership in e-commerce independent content optimisation adds capabilities in this rapidly emerging market to our already compelling measurement and execution services for brands," Ascential's chief executive, Duncan Painter, noted.
The FTSE 250-listed firm said it expects the acquisition to enhance its 2021 earnings.
In December 2020, ASR posted unaudited adjusted earnings before interest, tax, depreciation and amortisation of USD9.1 million and gross assets of USD3.3 million at the period end.
Ascential noted that ASR's earnings have increased since to USD13.6 million for the twelve month period that ended May 31.
"The global footprint of our existing business and expertise across multiple marketplaces offer a clear path to accelerate ASR's expansion, while introducing further insight and opportunities to grow our own digital commerce proposition," Painter added.
Shares in Ascential were trading up 0.4% at 421.80 pence each in London on Friday morning.
By Scarlett Butler; [email protected]
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