Wilmington Group plc announces the acquisition of the trading assets and certain liabilities of Compliance Week, the leading provider of governance , risk and compliance information and events for public companies and large enterprises primarily in the US. Compliance Week is being acquired from Haymarket Media Group for a net consideration of $11.215m in cash. Further deferred consideration of up to $3m is potentially payable in cash subject to Compliance Week achieving challenging profit growth targets in the financial year ended 30th June 2015.
Compliance Week was established in 2002 and was acquired by Haymarket Media Group in June
2008. Compliance Week focuses on global regulatory and compliance issues related to financial
reporting, regulatory enforcement, corporate governance, and enterprise risk management, from
consumer privacy to data management. The acquisition further strengthens Wilmington’s
presence in the global GRC market and establishes a significant operational base in North
Approximately 50% of Compliance Week’s revenue is derived from subscriptions, and a further
30% largely from annual conferences and events including their annual flagship event
“Compliance Week Conference” described as “the Davos of Compliance”. The remainder of
revenue relates to digital products, events and ebooks with approximately 10% of revenue
generated from print based and advertising products. Just over 12% of Compliance Week’s
turnover is generated outside of the US and the acquisition will increase the proportion of
Wilmington’s revenue generated from international markets.
Revenue in the 12 months to 30 June 2013 for Compliance Week was $6.0m and underlying
revenue growth over the last three years has been stable. The business has enjoyed overall
renewal rates on its subscription base of over 80% and approximately 90% of total revenue is
either delivered digitally or derived from events.
In the 12 months to 30th June 2013 Compliance Week made a profit before interest, amortisation
and taxation of $1.95m*1 and had gross assets of $0.75m*1. At 30th June the value of the assets
net of certain liabilities acquired resulted in a net liability of $0.8m.
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