3rd Jan 2006 07:01
Electric Word PLC03 January 2006 3rd January 2006 Electric Word plc Acquisition of SportBusiness Group Significantly Strengthens Sports Portfolio Electric Word plc, the specialist information publisher, announces today theacquisition of SportBusiness Group Ltd ("SBG"). SBG is a specialist publishingcompany operating in the growing markets of commercial sport and sports rightsand is highly complementary to Electric Word's sports division. SBG is beingacquired from Sussex Trading Company Ltd for a total maximum consideration of£2.74 million. SBG's titles are read by those involved in the business of sport and include:SportBusiness International magazine and website, the trade publication ofinternational sports business with a worldwide readership of senior rightsowners, broadcasters and intermediaries; the BritSport yearbook and directory;i-Gaming Business magazine, serving the international online and mobile gamingindustry; a range of high-value special reports; and TV Sports Markets, asubscriber-only newsletter analyzing and reporting on television sports rights. In the twelve months to November 2005, SBG broke even on a turnover of £1.7m(unaudited) and had net current liabilities of £129,000 at the period end.Within Electric Word the business is expected to be immediately earningsenhancing. Commenting on the acquisition, Julian Turner, Chief Executive of Electric Word,said: "SBG is a highly complementary acquisition for Electric Word. It strengthensour Sport Division and brings in valuable new competencies in media sales. Thebusiness of sport is a high growth market and the addition of SBG's titles toour own portfolio of sports information products creates an excellent platformfor growth, particularly in the run up to the 2012 London Olympics when weexpect to benefit from the increasing interest in sport and its commercialdevelopment." The total maximum consideration of £2.74 million comprises an initialconsideration of £2.49 million and contingent performance-related considerationof up to £250,000. The initial consideration is made up of £1.5m payable in theform of 18.75m new ordinary shares in Electric Word and £987,500 of preferenceshares convertible at 10p after two years, during which time up to £625,000 maybe redeemed at the Company's option on payment of interest at a rate of 2% perannum. The contingent payment of up to £250,000 is payable in 2007 conditionalon SBG meeting agreed performance criteria in 2006 and 2007. As a result of the acquisition Sussex Trading Company Ltd ("STC") will becomethe largest single shareholder in Electric Word plc. STC is owned by StewartNewton, the founder of Newton Investment Management. Stewart Newton commented: "The acquisition by Electric Word will benefit SBG's clients through itsstronger infrastructure and by enabling a broader range of services. ElectricWord is a dynamic publisher operating in very exciting markets. I look forwardto sharing in its future growth and development for many years to come." ENDS Notes to Editors Electric Word is a specialist information company comprising two divisions:Public Sector Management Information and Sport. Electric Word employs manypublishing formats, including newsletters in both paper and electronic media,conferences, books, special reports and online training. It has a particularstrength in renewable subscription products, which last year accounted for 72%of turnover. Enquiries: Julian Turner, Chief ExecutiveElectric Word plc020 7954 3470 Tim Spratt / Kim MuckleFinancial Dynamics020 7831 3113 Matthew RobinsonPanmure Gordon & Co020 7459 3607 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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