Centaur Media in £50m takeover of Econsultancy

Centaur Media, the publisher of trade magazines including Marketing Week and the Lawyer, has made its biggest-ever acquisition with the £50m takeover of e-commerce and marketing information firm Econsultancy.

The business-to-business publisher has paid an initial £12m in cash for the UK company, which has 11,000 registered users and about 5,000 paid-for subscribers to its services, with a further maximum of £38m payable in 2016 dependent upon management hitting earnings targets.

The deal, which will require shareholder approval, is part of Centaur Media's longterm strategy to move away from areas such as traditional print publishing to focus on digital and event-led businesses.

As well as its digital subscription business Econsultancy, which was founded in 1999, the company runs events, training and professional qualifications.

Centaur Media said it expects the deal to be "materially enhancing" within its first full year of ownership.

Econsultancy's key staff, including its chief executive and founder Ashley Friedlein, will stay with the business under the new ownership.

In the year to 31 December 2011, Econsultancy reported revenues of £6.6m, a 50% year-on-year increase, and adjusted earnings before, interest, tax and amortisation of £1.1m. The company employs 60 staff.

"The earnings-enhancing acquisition of Econsultancy provides us with an exciting opportunity to acquire a leading information brand in a high-growth sector with global potential which fits well with Centaur products including Marketing Week and New Media Age," said Geoff Wilmot, chief executive of Centaur Media.

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