Future Plc Buys US Digital Media Publisher SmartBrief For Up To $65 Mln
(RTTNews) - Future plc (FUTR.L), A platform for specialist media, announced Monday the acquisition of SmartBrief, Inc., a US-based digital media publisher, for an initial sum of $45 million. The total consideration would be up to $65 million.
The transaction is expected to be earnings enhancing in the current financial year and in the first full year following completion.
The company said the initial consideration will include $32.2 million in cash funded from its existing debt facilities, with a further $12.8 million to be satisfied through the issue to the vendors of 1.03 million new ordinary shares.
The agreement also includes a deferred consideration based on certain financial targets achieved over the year ending July 31, 2020, which is subject to a cap of $20 million.
The majority of SmartBrief's share capital is owned by three founders, one of whom is still active in the business as CEO, who is expected to remain with SmartBrief post close.
Washington DC-based SmartBrief publishes targeted business news and information, combining technology and editorial expertise to deliver relevant industry news curated from over 1,500 sources. It recorded annual revenues of $35.1 million and adjusted EBITDA of $5.0 million.
SmartBrief operates in partnership with trade associations, professional societies, non-profits and corporations across a range of verticals including business, education, finance, health care, marketing & advertising, retail and food & travel.
Zillah Byng-Thorne, CEO of Future, said, "This acquisition will substantially boost our presence and market position in the B2B sector and enhance our proprietary technology capabilities."