Euromoney Institutional Investor, the FTSE 250 international online information and events group, has expanded its insurance and reinsurance business with the acquisition of Insider Publishing, an information source for the sector.
The transaction is expected to be earnings enhancing for Euromoney from the 2013 financial year. Euromoney has so far paid an initial interest of £16.8m, funding by its existing borrowing facility, and said it expects to make a further deferred payment in 2015 based on the profit growth of the acquired firm from 2012 to the average of the 2013 and 2014 calendar years.
Insider Publishing's business model is based on providing premium subscription content through its publication, The Insurance Insider and a number of other specialist titles. It also runs a series of events for senior executives of the London insurance market.
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For the year ended December 31st the company posted an unaudited pre-tax profit of £2.1m on revenues of £4.7m.
"We are delighted to acquire Insider Publishing," said Richard Ensor, the Chairman of Euromoney.
"Euromoney expects the international non-life insurance and reinsurance markets to remain major consumers of business information. The acquisition gives Euromoney the opportunity to build critical mass in these markets and it will continue to run the two complementary brands, Reactions and The Insurance Insider, side by side."
The company added: "The acquisition of The Insurance Insider is consistent with Euromoney's strategy of investing in online subscription businesses which will benefit from Euromoney's global reach.
"With its strong brand, The Insurance Insider complements Euromoney's insurance title Reactions which focuses on the global insurance and reinsurance markets and their relationships with the capital markets."
The share price dipped 0.05% to 909.50p by 14:00.
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