1 Jul 2011 07:00
Dods (Group) plc ("Dods" or the "Company")
Acquisition
Dods acquires political news website - www.politicshome.com.
Dods announces that it has acquired the business and assets of PoliticsHome, the political news aggregation website, from Political Investments Limited and Politics Home Limited, companies of which Lord Ashcroft KCMG is the ultimate controlling party. Following the acquisition, PoliticsHome will form part of Dods' Parliamentary engagement product suite. No consideration is payable on completion, with contingent deferred consideration (up to a maximum of £2m) being payable in cash in 2014, based on certain revenue targets for Dods' Parliamentary engagement product suite for the year ending 31 December 2013.
PoliticsHome (www.politicshome.com) aggregates political news from a wide range of major media sources (print, digital, radio and TV) to provide a news portal for the political market. Led by its editor, Paul Waugh, the site has established itself as one of the most up to date sources of UK political news, and also as a key indicator of the topical political stories and how they are trending. In the year ended 31 December 2010, PoliticsHome had revenues of £0.1 million and a loss before tax of £0.5 million. PoliticsHome had gross liabilities of £0.7 million as at 31 December 2010.
Gerry Murray, Chief Executive Officer of Dods, said:
"The acquisition of Politics Home greatly enhances Dods' position within the wider political information market. PoliticsHome is very widely read within the Houses of Parliament and is integral to our plans to develop an online engagement tool for MPs. This is in line with the strategy of migrating our content from printed to digitally delivered products."
Paul Waugh, who is to continue as editor of PoliticsHome, said:
"This is a great moment for PoliticsHome, which started life as a small enterprise just three years ago. Our minute-by-minute coverage and reputation as Westminster's leading political news website is a perfect fit with Dods' extensive Parliamentary and commercial contacts and resources. I look forward to making our service even faster, even more comprehensive and ever more ahead of the curve."
The acquisition is a related party transaction pursuant to the AIM Rules for Companies, because the ultimate controlling party of Political Investments Limited and Politics Home Limited is Lord Ashcroft KCMG, who has a substantial interest in the Company. The independent directors (being the directors other than Andrew Wilson), having consulted with the Company's nominated adviser, consider that the terms of the acquisition are fair and reasonable insofar as Dods' shareholders are concerned.
For further information, please contact:
Enquiries:
Dods (Group) plc 020 7593 5500
Kevin Hand, Chairman
Rupert Levy, Finance Director
Cenkos Securities plc 020 7397 8900
Nicholas Wells, Adrian Hargrave - Nomad