BONH.L Regulatory News (BONH)

5 Nov 2007 07:01

Vitesse Media PLC05 November 2007 Date: 5 November 2007On behalf of: Vitesse Media Plc ("Vitesse", the "Company" or the "Group")Embargoed until: 0700hrs Vitesse Media Plc • Acquisition of Publisher • Placing of Ordinary Shares The Board of Vitesse Media Plc (AIM: VIS), the publishing, events andmultimedia company, is today delighted to announce the acquisition of Infoconomy("Acquisition"), publisher of Information Age and www.information-age.com. Infoconomy was established in 2000, employs 17 people and is based in CentralLondon. It is an award winning IT B2B publisher specialising in creatingbusiness opportunities for suppliers of IT & services. The company delivers highquality content in print, in person and online to targeted audiences of ITbuyers, specifiers and influencers. Its magazines include Information Age,iSight (on behalf of 3i) and Additions (on behalf of Sage). Information Age isa monthly technology magazine, with a BPA audited circulation of 24,000, 100%requested. The company has generated revenues of £1.7m for the financial periodto 28 February 2007, a net loss of £89,520 and net assets of £1,419. The Acquisition has been satisfied by the payment of a total of approximately£770,000 made up of £555,000 in cash ("Cash Consideration") and the transfer of577,163 of shares ("Share Consideration"). The Cash Consideration will besatisfied through an equity placing to raise £750,000 (£660,000 net ofexpenses). As part of the Vitesse Media Group, Information Age will have access to theVitesse Media audience and, as a result, is expected to increase revenues. Inaddition, Vitesse intends to seek cost savings by extending its greaterpurchasing power to Infoconomy's costs and to expand revenues by applying itsmarketing, event management and content management skills to Infoconomy's eventsand publications. The acquisition will provide opportunities to cross selltechnology suppliers into Vitesse Media's other publications as well as addingaround 11,000 pieces of content to its content database. The management ofInfoconomy has already taken steps towards turning the business into a crossplatform media business by running typically around 12 events a year and bydelivering fast increasing online revenues. Placing Vitesse also announces the placing of 3,000,000 new ordinary shares at 25p pershare (the "Placing Shares") to raise £750,000 (£660,000 net of expenses") (the"Placing"). The proceeds of the Placing, will be used to pay for the Cash Consideration, toprovide funds for small add-on acquisitions, for investment into online anddatabase assets, and to provide further working capital for the Group, which arealso being supplemented by additional bank facilities. As part of the Placing A. Brode and C. Ingram, non-executive directors ofVitesse, are subscribing for the following Placing Shares: No of Placing shares Holding following the % of issued share Placing capital following the Placing A Brode 124,000 674,000 2.75%C Ingram 160,000 2,465,253 10.07% Application has been made for admission of 3,577,163 shares, being the ShareConsideration and the Placing Shares (together the "New Ordinary Shares") totrading on AIM and dealings in the New Ordinary Shares is expected to commenceat 8.00am on 8 November 2007. The New Ordinary Shares will rank pari passu withthe existing ordinary shares. The Acquisition and the Placing are both subject to the placing shares beingadmitted to trading on AIM. Trading As announced on 31 October, Vitesse has made strong progress in the first sixmonths of the financial year, showing strong growth in revenues (up 65% to£2.357m). There has also been turn round in gross profit, up 74%, and at thebottom line (profit of £2,000 compared to a loss of £188,000 in 2006). Commenting on the acquisition, Sara Williams, Chairman of Vitesse Media plc,said: "We are delighted to welcome the team and range of titles to the Vitesse stable.We have made no secret of our desire to supplement our strong organic growthwith a focused programme of acquisitions. Infoconomy, and in particular itsInformation Age title, is a perfect fit. We believe that there will be a hugeknowledge exchange between the two companies." For further information please contact: Vitesse Media plc Via Redleaf CommunicationsSara WilliamsKym Kingwill KBC Peel Hunt (nominated adviser and broker) 0207 418 8900Patrick Booth-Clibborn Redleaf Communications 020 7822 0200Emma Kane / Sanna Lehtinen / Michael Ward About Vitesse Media Plc Award-winning, AIM-listed Vitesse Media plc is a multi-platform media businessboasting an array of market leading magazines, websites and events. Its focus ison the entrepreneurial sector, with an expert hub of information on AIM.Vitesse's websites include SmallBusiness.co.uk, GrowthBusiness.co.uk,GrowthCompany.co.uk, Whatinvestment.co.uk and MandAdeals.co.uk. Its magazinestable includes titles such Business XL, Growth Company Investor, M&A and WhatInvestment. The high-profile Vitesse Events division produces the Quoted CompanyAwards, Investor All Stars, Growth Cycle Seminars, Media & Money and the GrowthCompany Investor Show. Every month, Vitesse Media reaches a targeted audience ofaround 670,000 people, consisting of CEOs, entrepreneurs, professional advisers,venture capitalists and other investors, both institutional and private. This information is provided by RNS The company news service from the London Stock Exchange