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).

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.

"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

Recommended

Share tips of the week – 15 October
Share tips

Share tips of the week – 15 October

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
15 Oct 2021
Trading: stash the family cash in this cheap wealth management firm
Trading

Trading: stash the family cash in this cheap wealth management firm

Wealth management is a growth market. Rathbone Brothers should be a prime beneficiary – and looks cheap. Matthew Partridge explains the best way to pl…
12 Oct 2021
What the best-performing investment trusts of the past 20 years can teach us
Investment trusts

What the best-performing investment trusts of the past 20 years can teach us

Forty-two trusts have risen more than tenfold over the last two decades. What made the winners stand out? And how can we identify future outperformers…
12 Oct 2021
Activision Blizzard: a cheap play on videogames
Share tips

Activision Blizzard: a cheap play on videogames

Videogame maker Activision Blizzard has been in the news for the wrong reasons lately. But it has a bright future, says Stephen Connolly.
11 Oct 2021

Most Popular

How to invest in SMRs – the future of green energy
Energy

How to invest in SMRs – the future of green energy

The UK’s electricity supply needs to be more robust for days when the wind doesn’t blow. We need nuclear power, says Dominic Frisby. And the future of…
6 Oct 2021
Inflation is still one of the biggest threats to your personal finances
Investment strategy

Inflation is still one of the biggest threats to your personal finances

Central bankers and economists insist inflation will be gone by next year. We're not so sure, says Merryn Somerset Webb. So if you haven’t started to …
1 Oct 2021
How to invest as we move to a hydrogen economy
Energy

How to invest as we move to a hydrogen economy

The government has started to roll out its plans for switching us over from fossil fuels to hydrogen and renewable energy. Should investors buy in? St…
8 Oct 2021