Euromoney acquires Australian business - UPDATE

Euromoney Institutional Investor, the FTSE 250 international online information and events group, has announced the acquisition of a 75 per cent stake in the Centre for Investor Education (CIE).

The business, which is based in Australia, is the country's leading provider of investment forums for senior executives of superannuation funds and global asset management firms.

"We are delighted to acquire CIE," said Richard Ensor, Chairman of Euromoney. "Euromoney expects to benefit from the rapid growth of Australia's asset management industry.

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"This acquisition of the high-quality CIE business gives us the opportunity to consolidate further our position in this premium segment of the events market."

The acquisition is expected to be earnings enhancing for Euromoney in financial year 2013.

It has paid an initial £9.9m cash consideration, which will be adjusted up or down dependent on CIE's results for the year to December 2013.

Euromoney will acquire the remaining 25% of CIE's equity in two instalments based on CIE's profits for the years to December 2014 and 2015. The acquisition will be funded from Euromoney's existing committed borrowing facility.

CIE was acquired in 2010 from its founder, Melda Donnelly, by Erling Sorensen and Jamie Nemtsas who have expanded its portfolio of events and will remain shareholders in CIE until December 2015.

Erling Sorensen, Managing Director of CIE, added: "Having successfully built on the exceptional legacy of Melda Donnelly, Jamie Nemtsas and I believe Euromoney is now ideally positioned to elevate CIE to the next level, by contributing its experience and wealth of relationships with global institutional investors and asset managers."

CIE recorded an unaudited pre-tax profit of A$1.5m (£1.0m) on revenues of A$4.3m (£2.9m) for the year to December 2012.

NR