UBM takes 'significant step forward' after disposing Delta unit

FTSE 250-listed B2B communications and marketing service provider UBM has completed the bulk of the sale of its Data Services businesses, collectively known as Delta.

The sale, first announced earlier this year to independent private equity fund manager Electra Partners, is worth a total consideration of £160m including a £40m vendor loan note.

The group said on Tuesday that completions of the sale of the remaining Delta businesses would occur as certain additional regulatory and other conditions were satisfied.

Delta represents the bulk of UBM's Data Services segment and includes its Health, Technology and IP, Trade and Transport, and Paper business units.

Speaking on February 6th, UBM's Chief Executive Officer David Levin said: "This transaction is a significant strategic step forward for UBM: by divesting Delta we simplify UBM's business, improve the quality of our earnings, enhance our underlying growth rates and remove the challenges inherent in the continued transition to digital data delivery."

UBM said it would use £100m of the sale proceeds to repay bank debt.

MF