Future snaps up rival publisher Dennis for GBP300mln

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Magazine group Future PLC (LSE:FUTR) (LSE:FUTR) has agreed the acquisition of rival Dennis, the owner of titles such as Wealth, Knowledge and The Week from its private equity owner for GBP300mln.


The deal includes Science & Nature, IT Pro, Computer Active, PC Pro, Minecraft World and Coach, but not Viz, Fortean Times, Cyclist and Expert Reviews, all of which are being retained by vendor Exponent Private Equity.


In a statement, Future said titles such as MoneyWeek and Kiplinger will boost its presence in the financial publishing market in both the US and UK and enable it to leverage its existing technology platform.


The deal also substantially increases recurring revenues through subscriptions, said Future, with Dennis having more than 700,000 subscribers currently accounting for 75% of its revenues.


Future added that Dennis will also boost the group’s presence in the US, as more than half of its subscriptions currently come from there, while broadening the scope of its ‘B2B Pro Technology’ vertical.


Dennis’ revenues in 2020 were GBP104.8mln with underlying profits [adjusted EBITDA] of GBP20mln.


Zillah Byng-Thorne, Future’s chief executive, said: “The materially earnings enhancing acquisition is highly complementary to our longstanding ‘US first’ mindset and provides an attractive opportunity to scale our recently created ‘Wealth’ vertical, whilst diversifying our presence in our ‘Knowledge’ and ‘B2B Pro Technology’ verticals.”

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