UBM takes control of Canada Newswire
Business publisher and events organiser UBM has bought out the PA Group's half-share in Canada Newswire (CNW).
Business publisher and events organiser UBM has bought out the PA Group's half-share in Canada Newswire (CNW).
UBM is paying £30.1m in cash for the stake. Following the transaction, UBM will retain its 17% interest in the PA Group.
Established in 1960, CNW pumps out around 90,000 wire releases per year. In 2011 CNW generated revenues of £30.8m.
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Full ownership will enable UBM to integrate CNW with PR Newswire, UBM's newswire division. Cost savings from the integration of the businesses and technology platform are expected to be broadly offset by restructuring costs in the balance of 2012 and 2013. The return on this investment is expected to exceed UBM's cost of capital in 2013 and subsequent years.
"Customers of both companies will see many benefits, not the least of which will be expanded distribution capabilities, social and mobile integration and growth of our multimedia capabilities," claimed Ninan Chacko, Chief Executive Officer of PR Newswire.
David Levin, Chief Executive Officer of UBM, meanwhile, has accepted an invitation to join PA Group's board of directors.
JH
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