Future Publishing has acquired Newbay Media for $13.8 million, it has been revealed this morning.
Hosting B2B brands including industry title BikeBiz, the deal with Future is initially worth $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 49 brand portfolio, made up of publishing and events assets, tallied $4.2 million in revenues to the year ended December 2017.
According to Companies House data, Newbay Media’s revenues fell from £11.94 million in 2012 to £7.57 million by 2016. In that period net profits dipped from £1.08m to a net loss of £362,000.
The statement suggested that cross selling opportunities existed within the Future portfolio, which now adds B2B ties with brands such as MCV (Games), PCR (IT) and Music Week, among others.
Future did however sell its cycling titles (most notably MBUK and Cycling Plus) to Immediate Media in 2014 in a £24 million deal that saw the transfer of 130 staff.
Zillah Byng-Thorne, CEO of Future, commented: “Newbay is clearly aligned with Future in its mission to create content that connects, with market leading titles.
“This acquisition strengthens our presence in the US, and together with our recent UK acquisition expands our market leadership in music and consumer electronics. Newbay’s B2B titles, including those in audio visual and television broadcasting, will further diversify our revenue streams whilst bringing additional valuable B2B experience to complement Future’s B2C businesses.
“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.”