Wilmington Regulatory News (WIL)

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION for the purposes of Article 7 of EU Regulation 596/2014.

4 January 2018

Wilmington plc

Acquisition of Interactive Medica

-Strengthens Wilmington's digital presence across the European healthcare market -

-Brings positive cross-sell opportunities, proven technology and recurring revenue streams -

- Increases presence in pharmaceutical CRM and Key Account Management (KAM) software and solutions marketplace -

Wilmington plc ("Wilmington" or the "Group"), the knowledge leader in Risk & Compliance, Professional, and Healthcare, announces it has reached an agreement to acquire the Interactive Medica S.L. group of companies ("IM" and the "Acquisition") for an initial consideration of €2.8m with an adjustment for working capital, payable on completion. IM comes with an estimated €0.6m of cash on completion with further deferred consideration of up to €1.6m subject to IM achieving revenue targets for the period to 31 December 2019. The consideration is to be funded from the Group's existing debt facilities and the Acquisition is expected to complete by 31 January 2018.

The Acquisition is consistent with Wilmington's strategy of acquiring complementary businesses with high levels of recurring revenue and strong cash generation. IM will sit within Wilmington's Healthcare division which remains one of the priority areas for the Group's capital allocation.

Background to Interactive Medica

Interactive Medica is a pan-European provider of cloud-based insight, CRM and KAM offerings to the pharmaceutical industry. It is based in Madrid with offices in Holland, UK, and Sweden. IM holds a niche but important position in the pharmaceutical customer relationship and account management software and solutions marketplace. IM's revenue is predominantly subscription based and around 75% of its 2016 revenue came from mainland Europe with the balance from the UK.

IM has 14 staff across its various locations. The existing management team will continue in the business and IM clients will continue to be supported through the various locations around Europe.

Acquisition rationale

The global life science and medical technology industries operate a complex "go to market" strategy which requires companies to engage with multiple stakeholders in the healthcare ecosystem. In recent years, the increased sophistication of sales messages and the need to demonstrate cost effective outcomes for drugs and other products to be adopted by national health services or private insurers, has meant it is more important than ever to have access to the right information at the right time. To be effective, management of that information is inextricably linked to high quality technology solutions which capture, organise, present and analyse both numeric and text information.

IM's proven technology will not only enhance Wilmington's existing product offerings in the UK but will increase its ability to access other European markets; an area where Wilmington is actively looking to expand its product offerings.

Financial impact

The Acquisition is expected to be earnings per share enhancing in the first full year of ownership. IM revenue for the 12 months ended 31 December 2016 was €2.2m with EBITA of €45k1. IM's gross assets at 31 December 2016 were €2.2m2. The maximum consideration is €4.5m.

Commenting on the acquisition Pedro Ros, Chief Executive of Wilmington plc, said:

"I am pleased to announce the acquisition of Interactive Medica which represents an exciting opportunity for Wilmington to strengthen its technological capability and expand its growing healthcare presence in Europe

Our market leading UK healthcare business has been built on one of the richest sources of healthcare intelligence available. The addition of IM's proven technology will enhance its value still further by enabling this intelligence to be used even more effectively by our clients."

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Notes to Editors

Wilmington plc is the provider of information, education and networking services in Risk & Compliance, Professional and Healthcare knowledge areas. Capitalised at approximately £200 million, Wilmington floated on the London Stock Exchange in 1995.

1 Unaudited pro-forma based on consolidated management information for the year to 31 December 2016.

2 Unaudited pro-forma based on consolidated management information at 31 December 2016