23rd Jun 2016 06:56
LONDON (Alliance News) - Media company Future PLC on Thursday said it has agreed to acquire the owner of Imagine Publishing Ltd for GBP14.2 million, entirely in shares.
Future said it will issue 179.6 million shares to Miura (Holdings) Ltd to acquire the business, which would value the deal at GBP14.2 million based on Future's closing price of 7.90 pence on Wednesday.
Imagine's publishing portfolio includes 19 periodical magazines, including Retro Gamer and Digital Photographer, and a significant presence in 'bookazines', a hybrid of books and magazines which provide magazine content in a book form and at book prices.
Imagine is expected to post earnings before interest, tax and amortisation of GBP3.1 million for the financial year to the end of March 2016, on revenue of around GBP16.4 million.
Future said it anticipates the deal will be significantly earnings enhancing, generating good cost synergies and expanding both margins and cash generation for the business.
"This is a unique opportunity to acquire a market-leading knowledge, science and technology content business which will complement and expand our capabilities," said Future Chief Executive Zillah Byng-Thorne.
By Sam Unsted; [email protected]; @SamUAtAlliance
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