Future plc (LSE: FUTR), the global platform for specialist media, today announces the acquisition of Newbay Media LLC (Newbay), the US based information and events business, for an initial net consideration of $12.25m (£8.62m) cash and $1.55m (£1.09m) shares, with a further potential deferred consideration of up to $5.60m (£3.94m) in January 2019, depending on the future performance of the acquired business.
Newbay’s information and events business operates in three key verticals: Television & Video, Entertainment & Educational Technology and Music. Newbay’s market leading brands include Music Week, Twice and Broadcasting & Cable. Newbay generated EBITDA of $4.2m in the year ending 31 December 2017.
Press release: SAN FRANCISCO, April 4, 2018 /PRNewswire/ — Future plc, the global platform for specialist media, today announces it has completed the acquisition of NewBay Media, LLC. NewBay is an information and events business based in New York and London. It has a substantial B2B portfolio operating in verticals including Electronics and Education, and TV and Audio, where it publishes Broadcasting & Cable, the leading voice of authority in the television industry. Its business is mainly in the provision of conferences, magazines, events, digital content and data services. It also has a large consumer division in the Music vertical where it publishes magazines including Bass Player, Guitar World and Electronic Musician.
The deal expands Future’s reach into the US market and enhances its market leading position in music and consumer electronics. In addition, the acquisition brings B2B titles in the complementary verticals of audio visual, television broadcasting and educational technology, which will further increase Future’s revenue diversification model whilst also bringing B2B expertise to its existing titles.
The acquisition increases Future’s total owned brands to over 100 across print, events and online, with a total global reach of over 120m.
Zillah Byng-Thorne, CEO of Future, said:
“NewBay is clearly aligned with Future in its mission to create content that connects, with market leading titles.
“This acquisition supports our strategy of growth organically and through acquisition, global expansion and revenue diversification.
“We have a proven track record of acquisition and successful integration. This deal will be earnings enhancing and drive further organic growth in revenue and profitability in the first full year.”
Steve Palm, President & CEO of NewBay, said:
“The NewBay team’s expertise in engaging business decision makers, and providing solutions to sellers around the globe – through events, digital content, and marketing services – complements Future’s capabilities, creating a unique platform and exciting growth trajectory.
“This combination will result in new and better opportunities for both NewBay and Future partners to expand reach and depth of customer interactions throughout the buyer’s journey. Delivering data-driven brand and product awareness, thought leadership and demand for our partners will only be enhanced.
“I am proud of the many accomplishments made by the NewBay team over the last few years in the areas of events, marketing services and digital content, and I am equally excited to work alongside my new colleagues at Future to further grow our ability to delight our millions of users and thousands of partners.”
Future plc is an international media group and leading digital publisher, listed on the London Stock Exchange (symbol: FUTR). The Group operates two separately managed brand-led divisions: Media and Magazine. The Group has a reach of 100m+ globally, including 62m online users and 63m social media reach.
The Media division focuses on being at the forefront of digital innovation, in particular, the high growth technology and games markets, with three complementary revenue streams: eCommerce, events and digital advertising. It has a number of leading brands including TechRadar, PC Gamer, GamesRadar+, The Photography Show, Generate, The Homebuilding and Renovating Show and Golden Joysticks Awards.
The Magazine division has over 60 leading brands in diverse verticals including music, gaming, photography, home interest, field sports and technology. These include iconic household names such as T3, Total Film and PC Gamer as well as market leading specialist brands including Metal Hammer, Digital Camera and Edge.