Dods Group has agreed to purchase
Biteback Media and
Holyrood Communications from
Political Holdings.
The B2B political information and communication firm will pay £795,000 in cash for Biteback, which publishes monthly magazine Total Politics.
Biteback generated an earnings before interest, taxes, depreciation, and amortization (EBITDA) loss of £0.35m for the year to December 31st 2011 on revenues of £0.47m. The company made revenues of £0.7m, an EBITDA loss of £0.1m and had net assets of £0.2m after an adjustment for intercompany loans, during the 10-month period ended October 31st, 2012.
The consideration for Holyrood - a publishing and events business based in Edinburgh with focus in Scottish politics - was £416,806 in cash including a further potential payment of £250,000 if gross profit targets are reached. Holyrood achieved revenues of £1.9 million and generated EBITDA of £0.1m in the year ended March 31st, 2012.
Dods said the acquisition of Holyrood would increase the companys political activity in Scotland over the next two years.
The board of Dods expects both Biteback and Holyrood to be earnings enhancing for Dods in the year ending March 31st, 2014, the company said in a statement.
RD