United Business Media buys US firm for $287m

BRITISH events and publishing group United Business Media (UBM) has agreed to buy US tradeshows company Canon Communications for $287m to boost its presence in the medical sector and emerging markets.

UBM said yesterday the acquisition – the company’s largest since chief executive David Levin joined five years ago -- would make it the leading provider of tradeshows and related media for the medical-device design and manufacturing markets.

UBM’s investors reacted positively to the deal.

“The strategic fit looks good,” said a broker at Numis Securities, who kept a “hold” rating on UBM shares. “This implies last-twelve-month multiples of 2.7 times sales and 7.8 times EBITDA,” UBS analyst Alastair Reid wrote in a note.

In the 12 months to 30 June, Canon generated $106m in revenues and it had earnings
before interest, tax, depreciation and amortisation (EBITDA) of $37m.

UBM is buying Canon from Spectrum Equity Investors and Apprise Media.

The company said it expected the takeover to boost earnings per share by nine per cent in the first full-year of ownership.