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GlobalData in 'advanced discussions' for trio of acquisitions
GlobalData is looking to acquire Research Views Limited, Progressive Ventures Limited and Progressive Media Ventures Limited, along with their respective subsidiaries, in an all-share transaction.
The data and insights solution provider stated that it is in "advanced discussions" to acquire the companies which it intends to reorganise into a single group owned by Research Views Limited.
The company intends to pay for those three firms through the issue of 18m new ordinary shares in the company, representing approximately 17.6% of the company's current issued share capital, to the vendors.
Seeking to gain a differentiated multi-industry offering, the acquisition will add the energy industry to GlobalData's capabilities and strengthen its construction, healthcare and financial services through increased intelligence assets and capabilities.
GlobalData expects the acquisition to be earnings accretive in the first year of ownership.
Further to the news of the company's prospective acquisition, GlobalData also released its final results for the year ending 2017, registering a 22% increase in group revenue to £121.7m compared to the 2016 financial year.
GlobalData's results also showed a 29% increase in gross profit to £44m on the back of which operating profits rose to £659,000 compared to a loss of £1.6m in 2016.
The company's net debt increased to £43m from £25.5m, roughly reflecting the £20.3m spent on acquisitions.
Bernard Cragg, executive chairman of GlobalData, said: "GlobalData is transforming rapidly and significantly increasing its industry coverage and commercial scale. We have made further progress, with product and infrastructure development, as well as having made two strategic acquisitions. Our results are encouraging, with strong revenue growth and we exit the year with record deferred revenue, which gives us confidence for the forthcoming year."
In 2017, the company completed the $17.5m acquisition of MEED, a data and analytics firm focused on construction, and also further acquired a bolt-on which it has integrated into its healthcare proposition Infinita.
As of 1047 GMT, GlobalData's shares were up 9.59% at 600.00p.