27th Jul 2015 07:19
LONDON (Alliance News) - Informa PLC, a publishing and business intelligence company, has sold its Datamonitor Financial, Datamonitor Consumer, MarketLine and Verdict businesses to media company Progressive Digital Media Group PLC.
In a statement on Monday, Progressive Digital Media said it acquired the businesses for GBP25.0 million in cash, making the purchases under its strategy of expanding its premium subscription based services, and moving to strengthen its consumer activities.
The businesses subject to the deal produced pro-forma revenue of about GBP17.8 million in 2014, with adjusted earnings, excluding central costs, of about GBP3.0 million.
"Whilst some investment will be required this year and next, the board is confident that this acquisition will provide a platform for further growth," Progressive Digital Media Chief Executive Simon Pyper said in a statement.
The news came as Progressive Digital Media said it made a GBP1.2 million pretax profit from continuing operations in the six months ended June 30, compared with GBP307,000 in the corresponding period the prior year, as it reported growth in revenue and earnings before interest, tax, depreciation and amortisation. Informa reports half-year results on Tuesday.
"The fundamentals of the business are positive and we are confident that our focus on building premium Technology and Consumer Business Information services is the correct strategy and one which will yield long-term profitable growth," Pyper said.
Separately, Informa confirmed the sale of its consumer information businesses, which form part of the business intelligence division, through which it offers structured databases, subscription-based services, real-time news, and research.
Informa said the sale of its consumer information businesses within its business intelligence division was part of a broader portfolio management programme, which includes the disposal of its non-core InsuranceIQ business, completion of the transfer of its medical journals business to its academic publishing division from business intelligence, and a move to look at strategic options for the European conference business within the knowledge and networking division.
Informa shares were up 0.1% at 552.5 pence early on Monday morning in London. Progressive Digital Media shares were untraded at 225p.
By Samuel Agini; [email protected]; @samuelagini
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