Magazine publisher imagines bright future with £14.2m takeover deal
Magazine publisher Future has announced a £14.2m takeover deal for Imagine Publishing.
The target company’s portfolio includes 19 magazines, including All About History, Digital Photographer and World of Animals, as well as websites and bookazines.
Imagine is expected to report a revenue of £16.4m for the year to 31 March with earnings before interest, taxation and amortisation (Ebita) of £3.1m.
Future's share price jumped eight per cent to 8.5p after the deal was announced on Thursday morning.
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Future, which publishes Techradar, PC Gamer, Total Film and Guitarist magazines, reported group revenue of £30.2m, down from £30.8m, in the same period.
If the deal goes ahead, Future said it would lead to cost synergies, an enlarged profit margin and increased cash generation.
“This is a unique opportunity to acquire a market leading knowledge, science and technology content business which will complement and expand our capabilities,” Future chief executive Zillah Byng-Thorne said.
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“The acquisition will enable us to scale significantly our market position in bookazines and will see us enter the knowledge vertical, broadening our reach.
“The addition of Imagine with its strong management team and quality staff enables us to take a further substantial step towards our strategy of creating content that connects, increasing scale and improving operational efficiency.”