Magazine publisher imagines bright future with £14.2m takeover deal

 
William Turvill
Follow William
A man reads a magazine in the early even
This man is enjoying a magazine not published by either Future or Imagine (Source: Getty)

Magazine publisher Future has announced a £14.2m takeover deal for Imagine Publishing.

The target company’s portfolio includes 19 magazines, including All About History, Digital Photographer and World of Animals, as well as websites and bookazines.

Imagine is expected to report a revenue of £16.4m for the year to 31 March with earnings before interest, taxation and amortisation (Ebita) of £3.1m.

Future's share price jumped eight per cent to 8.5p after the deal was announced on Thursday morning.

Read more: Spending spree on the cards for publisher as it plans Future acquistions

Future, which publishes Techradar, PC Gamer, Total Film and Guitarist magazines, reported group revenue of £30.2m, down from £30.8m, in the same period.

If the deal goes ahead, Future said it would lead to cost synergies, an enlarged profit margin and increased cash generation.

“This is a unique opportunity to acquire a market leading knowledge, science and technology content business which will complement and expand our capabilities,” Future chief executive Zillah Byng-Thorne said.

Read more: Publisher ignores London IPO Time Out to target pre-referendum float

“The acquisition will enable us to scale significantly our market position in bookazines and will see us enter the knowledge vertical, broadening our reach.

“The addition of Imagine with its strong management team and quality staff enables us to take a further substantial step towards our strategy of creating content that connects, increasing scale and improving operational efficiency.”

Related articles