Acquisition
Huveaux PLC
26 July 2006
26 July 2006
HUVEAUX PLC
ACQUISITION OF LEADING ONLINE
POLITICAL MONITORING BUSINESS
Huveaux Group today announces that it has acquired the entire issued share
capital of Parliamentary Monitoring Services Limited ('PMSL'), including the
whole of its joint venture undertaking, Political Wizard Limited ('Political
Wizard'), a leading online political monitoring business in the UK and European
markets. The total consideration payable is £4.88 million in cash.
The acquisition of PMSL and Political Wizard represents a significant step in
Huveaux's strategic objective of expanding its successful political monitoring
and information business which trades under the powerful Dods brand. The
acquisition also enhances Huveaux's digital footprint and revenues, and adds
valuable and complementary online political brands, services and products
including Political Wizard, European Wizard and Campaign Wizard. The highly
regarded PMS Parliamentary Companion will also be brought into the Dods
offering. When combined with Dods' portfolio, these assets and the acquisition
of Political Wizard will:
- strengthen Dods' market-leading position in providing political
information, communication and reference data in the UK;
- double the number of Dod's monitoring clients, thereby substantially
increasing Dods' share in this growing and lucrative market;
- enable Dods to deliver a wider range of products and services, including
a new service at lower price points, to new and existing customers, particularly
within the Civil Service and Public Affairs communities; and
- facilitate the expansion of Dods' political monitoring and information
business in the EU and its institutions.
All PMSL products and services will be integrated within Huveaux's Political
Division and will benefit from Dods' management experience and marketing
strength as well as infrastructure savings.
The consideration payable on completion is £4.3 million with deferred
consideration of £0.58 million payable in four stages through to June 2008
subject to, inter alia, the successful completion of a technology transfer and
integration programme. The consideration, including transaction fees and
restructuring costs, will be financed through a £5.4 million secured loan from
Bank of Scotland.
The consolidated revenues of PMSL and Political Wizard for the last two
financial years ended 31 December 2004 and 2005 were £593,000 and £817,000
respectively and are forecast to be £900,000 for 2006. The normalised annual
running costs of these acquired businesses within Huveaux are estimated to be
£450,000 with an expected annual EBITDA of £450,000.
The Board expects the acquisition of Political Wizard to enhance Huveaux's
earnings in the first full financial year of ownership.
John van Kuffeler, Executive Chairman of Huveaux commented:
'The acquisition of Political Wizard will strengthen our position in the
strategically important area of political monitoring and provide an enhanced
platform from which we can continue to build a substantial business, as part of
our highly successful Dods Political Division, both in the UK and
internationally.'
A presentation for analysts will be held at 9.30 am today at the offices of
Dresdner Kleinwort, 30 Gresham Street, London EC2V 7PG. Coffee will be available
from 9.15 am.
For further information, please contact:
Huveaux
John van Kuffeler, Executive Chairman 020 7245 0270
Gerry Murray, Chief Executive Officer
Dan O'Brien, Group Finance Director
Finsbury
Katie Lang 020 7251 3801
Don Hunter
Note to Editors:
Huveaux was formed in 2001 with the objective of building a substantial,
high-quality publishing and media group. It is now twenty fold the size when it
first listed on AIM.
The Group consists of three Divisions each of which has strong brands and market
leading positions:
Political Division comprises Dod's Parliamentary Companion, The House Magazine,
Epolitix.com and numerous other magazine titles and revenue-generating websites.
It is the market leader in Political business-to-business publishing in the UK
and the EU.
Learning Division comprises Epic, the UK market leader in e-learning, The
Training Journal magazine and seminar business, Lonsdale Revision Guides for
schools and the highly acclaimed Westminster Explained conferences and seminars.
Healthcare Division, based in France, comprises Panorama du Medecin, a leading
weekly magazine for French doctors, Le Concours Medical and La Revue du
Praticien, both market-leading Continuing Medical Education magazines, Egora.fr,
the leading medical information website, and a number of other magazines and a
medical conference business.
Huveaux has now completed ten successful acquisitions over the past four years
and employs more than 450 staff in London, Paris, Brussels and four UK regional
offices.
Further information about Huveaux can be found at www.huveauxplc.com
The name Huveaux is a trademark of Huveaux PLC. All other trademarks mentioned
herein are the property of Huveaux's respective subsidiary companies. All rights
reserved.
This information is provided by RNS
The company news service from the London Stock Exchange