Ascential PLC Acquisition of Clavis Insight (2783A)
December 27 2017 - 2:00AM
UK Regulatory
TIDMASCL
RNS Number : 2783A
Ascential PLC
23 December 2017
22 December 2017
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED TO
CONSTITUTE INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET ABUSE
REGULATIONS
Ascential plc
Acquisition of Clavis Insight
Ascential plc (LSE: ASCL.L), the global business-to-business
information company, today announces the acquisition of Clavis
Insight ("Clavis") for an initial cash consideration of US$119m
paid in December 2017 plus future earn outs payable over three
years. The acquisition completed today.
Clavis is a market leader in eCommerce analytics, with
proprietary technology enabling consumer product companies to track
and optimise the performance of their products across hundreds of
retailer websites and mobile commerce sites globally. Clavis
customers include some of the world's largest consumer product
companies, such as P&G, Nestle, Unilever and L'Oreal.
Clavis will join Ascential's Information Services division and
is highly complementary to One Click Retail ("OCR"). In 2018 we
will integrate Clavis with OCR's Amazon sales and share product,
which, like Clavis, helps consumer product companies drive sales
through eCommerce. This combined product suite will constitute a
globally leading eCommerce performance measurement platform, to
enable both companies to provide broader capabilities to their
existing customers. Clavis employs 170 people, including 100 in
Dublin, with hub locations in the US, UK, France and China serving
a global customer base.
Clavis is growing rapidly and, in the year to 31 December 2016,
generated unaudited revenue of US$13m and an EBITDA loss of US$7m.
Gross assets at 31 December 2016 were US$19m. Revenue is expected
to grow to US$17m in the current financial year ended 2017 and
Clavis is expected to break even in 2018. Clavis benefits from a
high level of recurring revenue with 95% of total revenue being
subscription-based.
The initial cash consideration is US$119m. Earn out
consideration is payable in cash based on the annualized recurring
revenue of the business at the end of each of the next three years
to 2020 and is expected to total between approximately US$25m and
US$50m. A portion of the earn out is subject to founders remaining
in employment with the company. The total potential consideration,
including initial consideration and earn out payments, is capped at
US$219m in the event that extremely stretching annualized recurring
revenue levels are reached.
The acquisition, which will be funded from cash reserves and
existing borrowing facilities, is expected to be enhancing to
Ascential's earnings per share in the second full year of
ownership.
Duncan Painter, CEO, Ascential, commented:
"Ascential enables its customers to improve their business
performance. As a high growth business that offers synergies with
our existing brands, Clavis fits well with our strategy,
strengthening our eCommerce analytics offering for consumer product
companies. Through combination with OCR's offering, we will provide
ever more comprehensive, accurate and actionable analytics and
insight."
For further information, please contact:
FTI Consulting LLP 020 3727 1000
Jamie Ricketts / Adam Davidson
About Ascential plc:
Ascential is a global business-to-business information company
that informs and connects the business world in 150 countries
through market-leading Exhibitions & Festivals and Information
Services.
Ascential powers the global trend forecasting service WGSN,
environmental risk data business Groundsure, e-commerce analytics
provider One Click Retail, the prestigious Cannes Lions festival
for the branded communications industry, the world's premier
payments and financial services congress Money20/20 and MediaLink,
a U.S.-based advisory and business services firm. The company
provides customers with world class content and connections
empowering their businesses to be the best informed and best
connected. www.ascential.com
This information is provided by RNS
The company news service from the London Stock Exchange
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December 27, 2017 02:00 ET (07:00 GMT)
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