UK group Euromoney Institutional Investor Plc (LON:ERM) said on Tuesday it had bought local insurance and reinsurance information and events business Insider Publishing Ltd for an initial sum of GBP16.8m (USD25.4m/EUR19.6m).
By doing so, the company is growing its insurance and reinsurance operation, it said, adding that the move is part of its strategy of investing in online subscription businesses which can make use of its global reach.
In addition, the acquired firm’s Insurance Insider online news service will complement Euromoney’s own insurance title Reactions.
The buyer has used its existing committed borrowing facility to fund the initial consideration. It may provide an additional sum in 2015 based on Insurance Insider’s profit growth. The transaction is anticipated to build on Euromoney’s earnings from fiscal year 2013.
The purchased business registered an unaudited pre-tax profit of GBP2.1m on revenues of GBP4.7m in 2012.