Ascential PLC Acquisition of MediaLink (2212W)
February 07 2017 - 5:58AM
UK Regulatory
TIDMASCL
RNS Number : 2212W
Ascential PLC
07 February 2017
Tuesday 7 February 2017
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED TO
CONSTITUTE INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET ABUSE
REGULATIONS.
Ascential plc
Acquisition of MediaLink
Ascential plc (LSE: ASCL.L), the global business-to-business
media company with a focused portfolio of market-leading events and
information services products, today announces that it has agreed
to acquire 100% of US-based media advisory and business services
provider MediaLink for an initial cash consideration of $69m plus
future earnouts.
MediaLink provides advisory and business services to media
platforms and brands seeking to drive growth through better
marketing. It serves the consumer goods and services segment, which
Ascential already addresses through leading products such as WGSN,
Cannes Lions and Money20/20. It has worked with Cannes Lions'
customers since 2011 where it hosts content and client-oriented
meetings and events as part of the official fringe. The company,
which operates from four offices in the U.S. was founded in 2003 by
Michael Kassan, who will continue to run the business.
MediaLink will further strengthen and accelerate Ascential's
strategy to own market-leading brands in selected complementary
marketplaces and offer trusted information and valuable connections
to businesses. It is growing rapidly and delivered unaudited
revenue of $54m and adjusted PBT of $14m in 2016, with year-on-year
growth of 29% and 24% respectively, and had gross assets of $11m at
December 2016.
The initial consideration will be funded from Ascential's cash
reserves and existing borrowing facilities. The future earnouts are
payable over the period to February 2021 based on the adjusted
EBITDA of the business for the three years 2017 to 2019 and are
expected to total between $42m and $62m. The earnouts are payable
in cash or, for certain elements, shares at Ascential's option and
a portion of the earn-out payments is subject to founders remaining
in employment with the company. The total aggregate consideration,
including initial consideration and earn out payments, is capped at
$207m in the event that stretching profit targets are reached. The
acquisition is expected to be enhancing to earnings per share in
the first full year of ownership.
The transaction is expected to complete, subject to customary US
regulatory clearance, within the next month and, upon completion
MediaLink will form part of Ascential's Information Services
division.
Duncan Painter, Chief Executive Officer of Ascential plc,
said:
"MediaLink is a leader in its industry, with a strong and very
visible brand presence in the US. MediaLink is an excellent fit
with our existing Ascential offering and I am confident we can help
accelerate MediaLink's business into new markets by using our
assets and infrastructure over the coming months and years. I see
synergies between MediaLink and our portfolio of products to
significantly help accelerate our existing businesses and create
additional value for shareholders."
Michael Kassan, Chairman and CEO of MediaLink, commented:
"This is a transformational moment for MediaLink. Propelled by
the global footprint of Ascential and the combined resources and
talent of our organisations, we are going to write the most
remarkable chapter in MediaLink history. We look forward to working
closely with Ascential to create growth and new opportunities."
Contacts
Ascential plc +44 (0)207 516 5000
Duncan Painter, Chief Executive
Officer
Mandy Gradden, Chief Financial
Officer
Media enquiries - FTI Consulting +44(0)203 727 1000
Edward Bridges, Matt Dixon,
Chris Lane
Notes for Editors:
About MediaLink
MediaLink operates at the intersection of media, marketing,
advertising, entertainment and technology, delivering companies the
advice, partners and opportunities they need to shape innovative
go-to-market strategies. Unlike any other company in the strategic
advisory space, MediaLink not only advises, but importantly helps
companies execute to realize their optimal positioning, marketplace
visibility, talent, content, organizational design and M&A
goals. Its clients include Fortune 500 companies across the
media/marketing/advertising, technology, and entertainment
landscape, as well as private equity and venture capital firms.
Founded in 2003 by Michael E. Kassan, MediaLink employs 120+
professionals in New York, Chicago, Los Angeles and San
Francisco.
About Ascential plc
Ascential plc is a global business-to-business media company
that informs and connects the business world in 150 countries
through market-leading Exhibitions & Festivals and Information
Services.
Ascential powers the prestigious Cannes Lions festival for the
branded communications industry, the world's premier payments and
financial services congress Money20/20, Spring Fair/Autumn Fair,
the global fashion trend forecasting service WGSN and environmental
risk data business Groundsure.
Ascential's premium products enable focus, growth and value. The
company provides customers with world class content and connections
empowering their businesses to be the best informed and best
connected. www.ascential.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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