Future Share News (FUTR)

(Alliance News) - Future PLC on Friday said it has accelerated the payment of earnouts to the management team of MoNa Mobile Nations, the digital publisher that Future acquired in March.

The FTSE 250-listed magazines publisher said this move recognises the achievement of certain financial targets ahead of the anticipated timeframe and will enable the businesses to work together to deliver additional benefits across the combined businesses.

Future bought Mobile Nations for an initial USD55 million in cash, with a further USD5 million in shares. In addition, a further variable deferred consideration up to a total value of USD60 million was agreed, subject to meeting financial targets based on the year to the end of March 2020.

With the attainment of the financial targets for the year to the end of March 2020 likely to be above the top end of earn out range, Future said it has agreed to accelerate the earnout payment, based on assuming the achievement of USD11.5 million earnings before interest, taxes, depreciation, and amortization for the period.

This has resulted in deferred consideration of USD55 million becoming payable, Future said, which will be split equally between cash and the issuance of new shares.

The cash will be paid at the end of February 2020, and 1.8 million new shares will be issued, which will be subject to customary six month lock up apart from a requirement to pay taxes due in January 2020 arising from this issuance, capped at 20%.

"Mobile Nations has delivered a stellar performance since we acquired the business in March this year, significantly beating the targets that were set at the time of the acquisition. We have therefore decided to accelerate the earnout payments that are due to the management team so that the businesses can work together to deliver additional benefits across the Future group," said Chief Executive Zillah Byng-Thorne.

By Evelina Grecenko; evelinagrecenko@alliancenews.com

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