GlobalData Buys MEED Media From Ascential For USD17.5 Million In Cash

LONDON (Alliance News) - GlobalData PLC has agreed to purchase MEED Media FZ LLC from Ascential ...

Alliance News 8 December, 2017 | 2:04PM
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LONDON (Alliance News) - GlobalData PLC has agreed to purchase MEED Media FZ LLC from Ascential PLC for USD17.5 million in cash, the pair announced on Friday.

MEED provides premium business information content with an industry focus on infrastructure and projects in the Middle East, and with the business growing its client base principally through annual subscription contracts, GlobalData believes the unit will support its aim of expanding its premium subscription services into global markets.

In 2016, MEED generated USD18.7 million in revenue and made earnings before interest, tax, depreciation and amortisation of USD1.7 million. It did, however, end the year with net liabilities of USD1.7 million, which GlobalData said was due to deferred revenue.

The cash consideration will be financed using GlobalData's existing bank facilities and the acquisition is expected to be earnings accretive in the first year of ownership, the company said.

"MEED gives the group the opportunity to further expand into a key region and adds an additional industry vertical to our offering whilst maintaining our disciplined investment criteria of premium proprietary content and strong renewable subscription based revenues," said GlobalData Executive Chairman Bernard Cragg.

As for Ascential, the company said the sale concludes the heritage brand disposal process announced earlier in the year, with proceeds to be used to reduce net debt.

"Ascential's strategy is to focus on its top performing brands to drive sustainable organic growth. GlobalData has consistently shown its commitment to owning the MEED brands, which have a strong presence in the local market, and have a clear plan for success in the Middle East region," said Ascential Chief Executive Duncan Painter.

GlobalData shares were down 2.1% on the news, at 582.51 pence. Ascential was up 1.1% at 357.80 pence.

By Joshua Warner; joshuawarner@alliancenews.com

Copyright 2017 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Ascential PLC 298.20 GBX 11.10 -
GlobalData PLC 1,505.00 GBX 1.69 -

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