29th Jul 2019 09:14
(Alliance News) - Future PLC on Monday said it bought US-based digital media publisher SmartBrief Inc for a price of up to USD65 million.
The stock was trading 3.4% higher in London on Monday at 1,129.38 pence a share.
The magazines publisher said the initial payment of USD45 million will include a cash consideration of USD32.2 million funded from Future's existing debt facilities, with a further USD12.8 million to be satisfied through the issue to the vendors of SmartBrief of 1.0 million new Future shares.
The agreement also includes a deferred consideration based on agreed financial targets achieved over the year to the end of July 2020, Future said, subject to a cap of USD20 million.
Future said this acquisition enhances its proprietary technology stack through the addition of automated email marketing. The transaction is expected to be earnings enhancing in the current financial year, the FTSE 250-listed company said, and in the first full year following completion.
"This acquisition will substantially boost our presence and market position in the B2B sector and enhance our proprietary technology capabilities," explained Future Chief Executive Zillah Byng-Thorne.
"The acquisition of SmartBrief will be earnings enhancing, and we have identified a number of exciting opportunities to leverage SmartBrief's proprietary technology in both our B2C and B2B business," added Byng-Thorne.
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