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(Alliance News) - Ascential PLC on Wednesday announced it has sold its brand Groundsure to a subsidiary of ATI Global Ltd for GBP170 million.
The London-based information, data and analytics company said the total purchase price comprises an initial cash payment of GBP140 million and a GBP30 million interest-bearing vendor loan note repayable on or prior to December 31, 2023.
Ascential said the sale will allow capital to be allocated to core areas of focus, including the fast-growing Digital Commerce segment, organic investments and potential merger and acquisition opportunities.
In the financial year ended December 31, 2019, Groundsure generated revenue of GBP20.0 million and adjusted earnings before interest, tax, depreciation and amortisation of GBP12.4 million.
Central costs allocated to Groundsure amounting to GBP1.8 million in 2019 will be mitigated through a transitional services agreement and cost savings over the coming year, Ascential added.
"We are delighted that Groundsure has found new owners who will continue to nurture its strong team, product and potential as an independent stand-alone business. For us, today's transaction brings into even clearer focus our strategy and core customer proposition: enabling our customers to design and create the right products, maximising their marketing impact and optimising their digital commerce performance," said Chief Executive Duncan Painter.
Shares in Ascential were up 2.6% at 363.60 pence in London on Wednesday.
By Zoe Wickens; zoewickens@alliancenews.com
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