LONDON (Alliance News) - Johnston Press PLC said Friday it has agreed to buy the business and some assets of the 'i' newspaper from Independent Print Ltd for a total of GBP24 million.
It will pay GBP22 million in cash on completion of the deal, and GBP2 million on April 20, 2017. Johnston Press said the deal will create the UK's "fourth biggest news publishing group", selling around 600,000 copies a day, primarily outside of London.
The confirmation comes just a day after Johnston Press said it was in "late stage discussions" to buy the 'i' newspaper brand following press reports, although at a lower price than the GBP25 million than had been suggested in those reports.
Johnston Press highlighted the attractive demographic that makes up a majority of the readership of 'i', as well as its relationship with a number of blue-chip advertisers that do not currently advertise with Johnston Press' titles.
The publisher said it believes the acquisition will help build strength to its existing portfolio, which includes the Scotsman and the Yorkshire Post.
"This is a transformational acquisition for Johnston Press, and an important step towards delivering our long-term strategy. i is a highly regarded newspaper with a clear market position and a loyal readership. By joining with Johnston Press the combined circulation will be equal to 9% of national daily circulation, making us the fourth largest player in the market," said Chief Executive Ashley Highfield in a statement.
"This enhanced reach represents a significant growth opportunity for Johnston Press in terms of national print and digital advertising revenue. It also rebalances our revenues towards less volatile circulation revenues," Highfield added.
Shares in Johnston Press were up 3.4% at 41.89 pence Friday afternoon.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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