Ascential Acquires Digital Marketing Business WARC For GBP24 Million

LONDON (Alliance News) - Business-to-business media and events company Ascential PLC said ...

Alliance News 15 June, 2018 | 9:16AM
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LONDON (Alliance News) - Business-to-business media and events company Ascential PLC said Friday it has agreed to buy WARC Ltd, a digital subscription business, for GBP24.0 million.

Shares in the FTSE 250-listed media agency were trading flat at 437.20 pence each.

The deal to buy WARC, which helps clients to measure multi-channel advertising effectiveness, includes an initial cash payment of GBP19.5 million and a deferred one of GBP4.5 million, payable in 2019.

In the year to March 31, WARC generated revenue of GBP10.8 million and earnings before interest, taxes, depreciation and amortisation of GBP2.2 million.

"The business strengthens Ascential's digital product offering in the marketing discipline to span both creative excellence and marketing effectiveness and the intention is to combine WARC with Cannes Lions' The Work, to form a digital subscription product of scale," Ascential said.

Ascential said the acquisition, which will be funded from cash reserves and existing borrowing facilities, is expected to enhance its earnings per share in the current financial year.

In a separate statement, Ascential said that the Cannes Lions International Festival of Creativity, which it represents, registered 32,372 entries, in a decrease from the previous festival due to a restructuring.

The festival, aimed at those working in the creative communications and advertising fields, recorded entries 13% lower than the previous year, after the company decided to close the Cyber, Integrated and Promo & Activation lion awards.

Ascential also said that it had created two new Lions - Creative eCommerce and The Sustainable Development Goal - for 2018.

By Elena Cherubini; elenacherubini@alliancenews.com.

Copyright 2018 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Ascential PLC 360.80 GBX 4.34 -

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