Future Acquires Newbay Media For USD19.5 Million, Trades In Line (ALLISS)

4th Apr 2018 11:33

LONDON (Alliance News) - Media and publishing company Future PLC said on Wednesday it has acquired US-based information and events business Newbay Media LLC for a total of USD19.5 million.

Future will pay an initial consideration of USD12.3 million in cash and USD1.6 million in shares, consisting 301,995 shares at a price of 15.0 pence per share. with a further deferred consideration of up to USD5.6 million in January 2019, depending on the future performance of the acquired business.

Newbay currently operates in three verticals: Television & Video, Entertainment & Educational Technology and Music. For 2017, the business made earnings before interest, tax, depreciation and amortisation of USD4.2 million.

The acquisition is expected to expand Future's reach into the US market.

For the first half to the end of March, trading has been strong with the positive momentum from the year before continuing through, with declining revenue from the Magazine division more than offset by growth from the Media division.

"This acquisition strengthens our presence in the US, and together with our recent UK acquisition expands our market leadership in music and consumer electronics. Newbay's B2B titles, including those in audio visual and television broadcasting, will further diversify our revenue streams whilst bringing additional valuable B2B experience to complement Future's B2C businesses," said Chief Executive Officer Zillah Byng-Thorne.

"We have a proven track record of acquisition and successful integration. This deal will be earnings enhancing and drive further organic growth in revenue and profitability in the first full year," Thorne added.

Future will publish its interim results on May 17.

Shares in Future were up 2.1% at 391.80 pence on Wednesday.

---

Related Shares:

Future