16th Aug 2021 09:02
(Alliance News) - Future PLC on Monday said it has forked out GBP300 million in a deal which will see the magazine and website publisher add titles such as The Week to its portfolio.
Future shares were 5.9% higher at 3,902.00 pence each in London on Monday morning, the best performing FTSE 250 stock. Future shares have more than doubled so far in 2021, having ended December at 1,738.00p.
Bath, England-based Future will acquire consumer media subscriptions firm Dennis Publishing Ltd from private equity firm Exponent Private Equity LLP.
As part of the acquisition, Future is getting The Week, MoneyWeek, Kiplinger, Science & Nature, IT Pro, Computer Active, PC Pro, Minecraft World, and Coach. Current owners Exponent will retain Viz, Fortean Times, Cyclist and Expert Reviews.
Among the titles Future currently owns include UK house and garden title Country Life, bicycle brand Cycling weekly, and football magazine FourFourTwo.
The media company said Dennis will be "materially earnings enhancing" and the GBP300 million deal will be funded using existing debt facilities. The deal also expands its reach in North America, Future added. Dennis generates around 56% of its revenue in the US.
Dennis generated revenue of GBP104.8 million in 2020, a 12% rise on 2019.
Future Chief Executive Zillah Byng-Thorne said: "The materially earnings enhancing acquisition is highly complementary to our long-standing 'US first' mindset and provides an attractive opportunity to scale our recently created 'Wealth' vertical, whilst diversifying our presence in our 'Knowledge' and 'B2B Pro Technology' verticals."
By Eric Cunha; [email protected]
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