(Alliance News) - Ascential PLC on Tuesday said it has completed the sale of its digital commerce business, as well as a new financing deal.
The London-based business-to-business media and events said the sale of its digital commerce business to Omnicom Group Inc, a New York-based media company, has completed.
In October, Ascential said it had agreed to sell its digital commerce business to Omnicom and its product design business to funds advised by Apax Partners LLP. The sales are for a combined enterprise value of GBP1.4 billion and brings it cash proceeds of GBP1.2 billion.
Consequently, Duncan Painter has now stepped down as chief executive officer. He will now serve as CEO of Flywheel Digital, a new practice area within Omnicom.
Philip Thomas has been appointed as executive director & CEO of Ascential. He is currently CEO of Ascential Intelligence & Events.
Chair Scott Forbes said: "On behalf of the board I would like to thank Duncan for his stewardship of Ascential over the past 12 years. Under his tireless and visionary leadership, each of our portfolio businesses have been truly transformed to meet the challenges of the modern era. We wish Duncan continued success in the next chapter of his career with Omnicom.
"We are delighted to welcome Philip Thomas to the board as CEO of Ascential and executive director. Phil is already a long-serving and well-respected leader within our business, with an excellent track record. I look forward to working closely together in this next phase of Ascential's growth."
Also on Tuesday, Ascential said it has agreed a new, four-year, multi-currency revolving credit facility of GBP200 million with a syndicate of banks.
This new facility will become effective when Ascential's existing GBP450 million RCF is fully repaid and cancelled following the completion of the Digital Commerce sale. Further it includes an accordion to raise additional debt amounts of up to GBP25 million by March and further amounts of up to GBP75 million over the life of the facility.
Meanwhile, Ascential said it has got all regulatory clearances for the sale of its product design business.
In October, Wind UK Bidco 3 Ltd - a firm established by funds advised by Apax Partners - said it will buy Ascential's product design business for an enterprise value of up to GBP700 million.
The sale of it is due to complete at the beginning of February this year.
Shares in Ascential were down 0.3% to 292.40 pence each in London on Tuesday around midday.
By Sophie Rose, Alliance News senior reporter
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