1st Nov 2012 07:00
1 November 2012 UBM plc strengthens its PR Newswire business Acquires outstanding 50% stake of Canada Newswire for £30.1m
UBM plc today announces that PR Newswire has acquired the outstanding 50% share in its Canada Newswire (CNW) business from the PA Group Limited (PA Group) for cash consideration of £30.1m. Following the transaction, UBM will retain its 17% interest in the PA Group.
Established in 1960, CNW is the leading newswire provider in Canada, distributing approximately 90,000 wire releases per year. It is also the country's largest investor relations webcast provider and a leading regulatory filing agent. In 2011 CNW generated revenues of £30.8m.
UBM has fully consolidated CNW's results reflecting its direct and indirect ownership of 58.5%. The acquisition will not directly affect reported consolidated revenue or operating income. The transaction will eliminate the non-controlling interest in CNW profit which in 2011 was £2.3m.
Full ownership will enable PR Newswire to implement an aligned commercial, product development and infrastructure strategy across its North American business. Alignment is expected to result in incremental revenues in Canada by providing customers with access to PR Newswire's full range of product offerings and by enabling the two organisations to work together in accelerating the trend towards higher engagement products. Cost savings from the integration of the businesses and technology platform are expected to be broadly offset by restructuring costs in the balance of 2012 and 2013. The return on this investment is expected to exceed UBM's cost of capital in 2013 and subsequent years.
Ninan Chacko, CEO of PR Newswire, said:
"PR Newswire and CNW have enjoyed many years of close collaboration. By bringing the two companies together, we will be able to better serve our customers in Canada and around the world. Customers of both companies will see many benefits, not the least of which will be expanded distribution capabilities, social and mobile integration and growth of our multimedia capabilities.
The current management team of CNW will remain in place to drive the integration and capitalise on this revenue opportunity."
David Levin, CEO of UBM plc, said:
"We have enjoyed a long and fruitful partnership with the PA Group. I am delighted to accept the PA's invitation to join its Board of Directors."
- Ends - ContactsMedia Peter Bancroft Director of Communications E-mail [email protected] Direct telephone +44 20 7921 5961 Chris Barrie Citigate Dewe Rogerson E-mail [email protected] Direct telephone +44 20 7282 2943 Mobile +44 796 872 72 89 Analysts/Investors Kate Postans Head of Investor Relations Email [email protected] Direct telephone +44 20 7921 5023 Notes to Editors1. About UBM plc
UBM plc is a leading global business media company. We inform markets and bring the world's buyers and sellers together at events, online, in print and provide them with the information they need to do business successfully. Our 6,500 staff in more than 30 countries are organised into specialist teams which serve commercial and professional communities, helping them to do business and their markets to work effectively and efficiently.
For more information, go to www.ubm.com; follow us on Twitter at @UBM_plc to get the latest UBM news.
2. About PR Newswire
PR Newswire is the premier global provider of multimedia platforms that enable marketers, corporate communicators, sustainability officers, public affairs and investor relations officers to leverage content to engage with all their key audiences. Having pioneered the commercial news distribution industry 58 years ago, PR Newswire today provides end-to-end solutions to produce, optimize and target content - from rich media to online video to multimedia - and then distribute content and measure results across traditional, digital, mobile and social channels. Combining the world's largest multi-channel, multi-cultural content distribution and optimization network with comprehensive workflow tools and platforms, PR Newswire enables the world's enterprises to engage opportunity everywhere it exists. PR Newswire serves tens of thousands of clients from offices in the Americas, Europe, Middle East, Africa and the Asia-Pacific region, and is a UBM plc company.
For more information, go to www.prnewswire.com
3. About the Press Association
The Press Association is the UK's leading multimedia news agency and information provider and supplier of business-to-business media services.
As home to the national news agency of the UK and Ireland, the Press Association proudly takes its place at the heart of the media industry providing a continuous feed of text, pictures, video and data into newsrooms around the country.
Founded in 1868, the Press Association has an unrivalled reputation for providing fast, fair and accurate news content.
Alongside our core national news agency operation, the Press Association also supplies a wide range of content and editorial services ranging from international sports data, comprehensive entertainment guides and photo syndication to editorial training and weather forecasting. We work with customers across the media industry including national and regional newspapers, magazines, TV and radio broadcasters and digital platforms.
The Press Association is also a key news supplier to non-media customers, assisting commercial, government and not-for-profit organisations to access information and communicate successfully.
The Press Association is owned by PA Group Limited. Other PA Group companies include weather forecasting business MeteoGroup and the TVready network Globelynx.
For more information, go to www.pressassociation.com
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