Hyve Buys Two US E-Commerce Marketing Firms For USD145 Million

(Alliance News) - Hyve Group PLC on Wednesday said it has acquired US-based marketing firms ...

Alliance News 18 December, 2019 | 5:34PM
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(Alliance News) - Hyve Group PLC on Wednesday said it has acquired US-based marketing firms Shoptalk Commerce LLC and Groceryshop LLC for a combined USD145 million, on a cash free, debt free basis.

The deal will be funded from the drawdown of its GBP250 million refinanced debt facility and a share placing, which will be fully underwritten by Numis Securities.

Hyve will place up to 59.6 million share to certain existing shareholders and institutional investors, including Hyve directors. The placing will be conducted alongside a subscription for 14.6 million new Hyve shares for the founders and management of Shoptalk and Groceryshop.

The total number of shares in the placing and subscription will not exceed 74.2 million, which represents about 10% of Hyve's issued share capital.

The price and exact number shares in the placing will be decided at the end of the bookbuild. Shares in the conference and exhibitions organiser closed down 0.4% at 90.50 pence each on Wednesday. It made its announcement after the London market close.

Hyve Chief Executive Mark Shashoua said: "I am very pleased to announce the acquisition of two truly market-leading events, Shoptalk and Groceryshop. This acquisition continues our evolution into a best in class portfolio of market-leading events. We see multiple areas of growth from these events, including future geo-clone opportunities and leveraging their best of breed hosted buyer strategy, using their bespoke software on selected Hyve events."

The two firms are expected to generate USD35.8 million revenue in 2019. Hyve reported a profit of GBP8.7 million for the year to the end of September, as revenue grew by 26% to GBP220.7 million.

The company's Global Brands unit - where Shoptalk and Groceryshop will sit - would see the proportion of revenue contributed to the group rise to 31% from 23% had the two firms been a part of the company for financial 2019.

Hyve said the deal is expected to be "materially" earnings enhancing by 2021.

"This acquisition delivers on our vision to create the world's leading portfolio of content-driven, must-attend events that provide an outstanding experience and return on investment for our customers," Shashoua added.

By Paul McGowan; paulmcgowan@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Hyve Group PLC 85.70 GBX -1.95 -

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