Ascential Share News (ASCL)

(Sharecast News) - Information and analytics company Ascential announced the acquisition of Perpetua Labs, an e-commerce media optimisation business that primarily targets third-party sellers, for $52m (£37.71m) on Thursday.
The AIM-traded firm said Perpetua provides a self-service software-as-a-service (SaaS) platform for independent sellers, as well as agencies and some larger brands, to optimise the purchase of search and display advertising on Amazon and other major marketplaces.

It said the acquisition would bring Ascential's digital commerce segment into "new territory", as to date it had exclusively served first-party vendors.

Perpetua has 66 staff, based primarily in Toronto, including founder and chief executive officer Rosco Hill who is the largest shareholder.

The acquisition was for initial cash of $52m, plus deferred consideration payable over four years, making for an estimated total consideration of between $103m and $162m.

Total consideration payable for Perpetua, in the event that "very stretching" targets were reached, would be capped at $250m.

In the year ended December 2020 Perpetua recorded revenue of $3.8m and an EBITDA loss of $0.2m.

At year-end, it had annualised monthly recurring revenue of $7.4m, with gross assets of $10.9m.

"Perpetua's expertise serving third party vendors, through data-driven solutions, opens the door for Ascential to this large and fast-growing market segment," said Ascential CEO Duncan Painter.

"Combined with the global reach of our existing digital commerce businesses, that provide a full service offering to larger, first party, brands, we have the exciting opportunity, with Perpetua, to expand our offerings across further platforms and geographies."

At 0910 BST, shares in Ascential were up 1.8% at 361.6p.