Business
Acquisition of Dennis
Acquisition of Dennis.
About this update from Future Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 6707I\n Future PLC\n 16 August 2021\n \n \n \n \n 16 August 2021\n \n \n This announcement contains inside information \n \n \n Future plc\n \n \n Acquisition of Dennis\n \n \n Future plc (LSE: FUTR, \"Future\", the \"Group\"), the global platform for specialist media, is pleased to announce the acquisition of Dennis, a leading consumer media subscriptions business, which includes trusted Wealth, Knowledge and B2B technology specialist titles such as, Kiplinger, MoneyWeek, The Week & IT Pro, from Exponent Private Equity LLP (\"the Vendors\", or \"Exponent\"). \n \n \n The acquisition, which is expected to be materially earnings enhancing, is for a purchase price of approximately £300m, funded using the Group's existing debt facilities. \n \n \n The titles being acquired by Future are: The Week UK / The Week US, The Week Junior UK / The Week Junior US, MoneyWeek, Kiplinger, Science & Nature, IT Pro, Computer Active, PC Pro, Minecraft World, and Coach. \n \n \n The four titles not being acquired by Future - Viz, Fortean Times, Cyclist and Expert Reviews - will be retained by the Vendors. \n \n \n Strategic rationale\n \n \n 1. Scale the Group's 'Wealth' vertical\n \n \n ● \n The acquisition's trusted brands including MoneyWeek and Kiplinger provide a highly complementary and scale presence in this vertical both in the US and UK, enhancing the Group's ability to broaden its monetisation channels.\n \n \n ● \n The Group will be able to leverage its technology platforms for advertising and eCommerce and centres of excellence to the acquired brands. \n \n \n \n \n \n 2. Further diversify the Group's revenue by materially increasing the Group's recurring revenues through subscriptions\n \n \n ● \n Subscriptions represent 75%1 of Dennis' revenues, driving stable, long-term customer retention.\n \n \n ● \n Dennis' subscription conversion engine will strengthen the capability across the wider group and add further expertise in pricing and yield management. \n \n \n ● \n Subscriptions provide additional data enrichment through highly qualified first party data in both the US and UK.\n \n \n \n \n \n 3. Further extend the Group's reach in the North American market\n \n \n ● \n Future's existing brands currently reach 1 in 3 people online in the US.\n \n \n ● \n c.56% of re...