29th May 2024 13:49
(Alliance News) - Shares in Bloomsbury Publishing PLC jumped on Wednesday, after it said it has snapped up Rowman & Littlefield Publishing Group's academic publishing business for up to USD83 million.
Shares in the London-base publishing house were up 5.7% to 590.00 pence each in London on Wednesday afternoon. It was amongst the best small-cap performers.
Over the last 12 months, shares in Bloomsbury have shot up 44%.
On Wednesday, Bloomsbury said it has bought the academic publishing arm of Rowman & Littlefield, a privately-owned independent publisher. It publishes more than 40,000 academic titles, with authors covering academic arts, humanities and social sciences.
Bloomsbury said it will pay up to USD83 million, of which USD76 million has so far been paid, with up to a further USD7 million to be paid post completion.
"It is the biggest acquisition by Bloomsbury to date, and significantly accelerates and strengthens Bloomsbury's academic publishing in North America and Bloomsbury Digital Resources," Bloomsbury said.
Bloomsbury is not the only one with this view.
AJ Bell's investment analyst Dan Coatsworth said: "Bloomsbury has come a long way from the days when its fortunes were almost completely tied to the Harry Potter franchise and today's acquisition of a US academic publisher accelerates the company's diversification strategy."
Meanwhile, Fiona Orford-Williams, director of TMT, called the deal "sizeable."
Orford-Williams added: "The clearly articulated M&A priorities had been for US-based assets with a strong academic offering and digital potential and Rowman & Littlefield ticks all those boxes. The fit on subject matter also looks strong, with an emphasis on the arts, humanities and social science, giving a compelling combined offering for the enlarged group to propose to academic institutions."
By Sophie Rose, Alliance News senior reporter
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