7th Jul 2015 07:45
LONDON (Alliance News) - Wilmington PLC on Tuesday said it has struck a USD20.6 million deal to acquire the trading assets and some liabilities of Financial Research Associates LLC.
Wilmington is acquiring the company, which manages events in the healthcare and finance sectors, from its founding management team, which will remain with the business.
The consideration comprises USD13 million initially, with a further USD1.5 million in two deferred cash payments to be made based on the management team of Financial Research Associates remaining with the company through to 2017. The other USD4.6 million will be due based on the company hitting financial targets through to 2017.
Wilmington said the deal should boost its international presence, providing closer access to a pool of customers in North America, and will allow Financial Research Associates events to be expanded to the UK and Europe. FRA has 47 staff in two offices in Charlotte, North Carolina and Santa Cruz, California. Its revenue in 2014 was USD10.5 million, which Wilmington said represented an underlying 19% increase on the year before.
"FRA is a quality business with excellent market positions supported by an entrepreneurial and ambitious management team. This earnings enhancing acquisition provides Wilmington with new networking opportunities and capabilities within our Finance and Healthcare areas," said Pedro Ros, Wilmington's chief executive.
Shares in Wilmington were up 3.9% to 265.00 pence on Tuesday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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