AMERICAS - UBM subsidiary PR Newswire has acquired the outstanding 50 per cent share in its Canada Newswire (CNW) business from the PA Group for a cash consideration of £30.1m (US$48.6m).
The leading newswire provider in Canada according to UBM, CNW distributes 90,000 wire releases per year. It is also claimed to be the country’s largest investor relations webcast provider and a leading regulatory filing agent. In 2011 CNW generated revenue of £30.8m.
Following the transaction, UK-based media and events company UBM will retain its 17 per cent interest in the PA Group. UBM CEO David Levin (pictured) will also join the PA Group’s board of directors.
UBM has fully consolidated CNW’s results reflecting its direct and indirect ownership of 58.5 per cent. The acquisition will not directly affect reported consolidated revenue or operating income, but it will eliminate the non-controlling interest in CNW profit, which in 2011 was £2.3m.
PR Newswire CEO Ninan Chacko said: “PR Newswire and CNW have enjoyed many years of close collaboration. By bringing the two companies together, we will be able to better serve our customers in Canada and around the world.
Customers of both companies will see many benefits, not the least of which will be expanded distribution capabilities, social and mobile integration and growth of our multimedia capabilities.
The CNW management team will remain in place to drive the integration.
UBM recently acquired a 70 per cent stake in Turkish exhibition organiser EFEM as part of a new joint venture company in the region.
Do you have a news story for EW? Email exhibitionworld@mashmedia.net
