Acquisition and Placing
November 05 2007 - 2:01AM
UK Regulatory
RNS Number:9781G
Vitesse Media PLC
05 November 2007
Date: 5 November 2007
On behalf of: Vitesse Media Plc ("Vitesse", the "Company" or the "Group")
Embargoed until: 0700hrs
Vitesse Media Plc
* Acquisition of Publisher
* Placing of Ordinary Shares
The Board of Vitesse Media Plc (AIM: VIS), the publishing, events and
multimedia company, is today delighted to announce the acquisition of Infoconomy
("Acquisition"), publisher of Information Age and www.information-age.com.
Infoconomy was established in 2000, employs 17 people and is based in Central
London. It is an award winning IT B2B publisher specialising in creating
business opportunities for suppliers of IT & services. The company delivers high
quality content in print, in person and online to targeted audiences of IT
buyers, specifiers and influencers. Its magazines include Information Age,
iSight (on behalf of 3i) and Additions (on behalf of Sage). Information Age is
a monthly technology magazine, with a BPA audited circulation of 24,000, 100%
requested. The company has generated revenues of #1.7m for the financial period
to 28 February 2007, a net loss of #89,520 and net assets of #1,419.
The Acquisition has been satisfied by the payment of a total of approximately
#770,000 made up of #555,000 in cash ("Cash Consideration") and the transfer of
577,163 of shares ("Share Consideration"). The Cash Consideration will be
satisfied through an equity placing to raise #750,000 (#660,000 net of
expenses).
As part of the Vitesse Media Group, Information Age will have access to the
Vitesse Media audience and, as a result, is expected to increase revenues. In
addition, Vitesse intends to seek cost savings by extending its greater
purchasing power to Infoconomy's costs and to expand revenues by applying its
marketing, event management and content management skills to Infoconomy's events
and publications. The acquisition will provide opportunities to cross sell
technology suppliers into Vitesse Media's other publications as well as adding
around 11,000 pieces of content to its content database. The management of
Infoconomy has already taken steps towards turning the business into a cross
platform media business by running typically around 12 events a year and by
delivering fast increasing online revenues.
Placing
Vitesse also announces the placing of 3,000,000 new ordinary shares at 25p per
share (the "Placing Shares") to raise #750,000 (#660,000 net of expenses") (the
"Placing").
The proceeds of the Placing, will be used to pay for the Cash Consideration, to
provide funds for small add-on acquisitions, for investment into online and
database assets, and to provide further working capital for the Group, which are
also being supplemented by additional bank facilities.
As part of the Placing A. Brode and C. Ingram, non-executive directors of
Vitesse, are subscribing for the following Placing Shares:
No of Placing shares Holding following the % of issued share
Placing capital following
the Placing
A Brode 124,000 674,000 2.75%
C Ingram 160,000 2,465,253 10.07%
Application has been made for admission of 3,577,163 shares, being the Share
Consideration and the Placing Shares (together the "New Ordinary Shares") to
trading on AIM and dealings in the New Ordinary Shares is expected to commence
at 8.00am on 8 November 2007. The New Ordinary Shares will rank pari passu with
the existing ordinary shares.
The Acquisition and the Placing are both subject to the placing shares being
admitted to trading on AIM.
Trading
As announced on 31 October, Vitesse has made strong progress in the first six
months of the financial year, showing strong growth in revenues (up 65% to
#2.357m). There has also been turn round in gross profit, up 74%, and at the
bottom line (profit of #2,000 compared to a loss of #188,000 in 2006).
Commenting on the acquisition, Sara Williams, Chairman of Vitesse Media plc,
said:
"We are delighted to welcome the team and range of titles to the Vitesse stable.
We have made no secret of our desire to supplement our strong organic growth
with a focused programme of acquisitions. Infoconomy, and in particular its
Information Age title, is a perfect fit. We believe that there will be a huge
knowledge exchange between the two companies."
For further information please contact:
Vitesse Media plc Via Redleaf Communications
Sara Williams
Kym Kingwill
KBC Peel Hunt (nominated adviser and broker) 0207 418 8900
Patrick Booth-Clibborn
Redleaf Communications 020 7822 0200
Emma Kane / Sanna Lehtinen / Michael Ward
About Vitesse Media Plc
Award-winning, AIM-listed Vitesse Media plc is a multi-platform media business
boasting an array of market leading magazines, websites and events. Its focus is
on the entrepreneurial sector, with an expert hub of information on AIM.
Vitesse's websites include SmallBusiness.co.uk, GrowthBusiness.co.uk,
GrowthCompany.co.uk, Whatinvestment.co.uk and MandAdeals.co.uk. Its magazine
stable includes titles such Business XL, Growth Company Investor, M&A and What
Investment. The high-profile Vitesse Events division produces the Quoted Company
Awards, Investor All Stars, Growth Cycle Seminars, Media & Money and the Growth
Company Investor Show. Every month, Vitesse Media reaches a targeted audience of
around 670,000 people, consisting of CEOs, entrepreneurs, professional advisers,
venture capitalists and other investors, both institutional and private.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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