Ascential buy: FTSE 250 media company behind Cannes Lions festival buys $69m US firm
Ascential, the FTSE 250-listed media company formerly known as Emap, has agreed to buy US advisory and business services group MediaLink.
The company behind the Cannes Lions advertising festival has agreed an initial cash consideration for MediaLink of $69m (£55m) plus future earnouts.
The target company, which was founded in 2003 and has four offices in the US, provides services to media platforms and brands seeking growth through better marketing.
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Ascential is familiar with the company because it has worked with Cannes Lions’ customers since 2011, where it hosts meetings and events.
The US company reported revenue of $54m, up 29 per cent, in 2016, with profits before tax of $14m, up 24 per cent.
Ascential last month announced the sale of the Health Service Journal and the company is also seeking to offload 12 further magazine titles this year.
Duncan Painter, chief executive of Ascential, said: “MediaLink is a leader in its industry, with a strong and very visible brand presence in the US.
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“MediaLink is an excellent fit with our existing Ascential offering and I am confident we can help accelerate MediaLink’s business into new markets by using our assets and infrastructure over the coming months and years.
“I see synergies between MediaLink and our portfolio of products to significantly help accelerate our existing businesses and create additional value for shareholders.”