Euromoney announced that it is buying a mining conference business to expand its footprint in the commodities markets and with investors, complementary to its Metal Bulletin and Institutional Investor brands.
Euromoney is acquiring the trade and certain assets of the Mining Investment Events Division of US-based Summit Professional Networks. The principal asset being acquired is a conference on African mining, the Investing in African Mining Indaba. It takes place every February in Cape Town, South Africa, and attracts over 7000 mining professionals.
Euromoney will pay £45.3 million (US$77 million) in cash, funded from Euromoney’s existing committed borrowing facilities. The conference business earned an adjusted EBITDA (before allocation of Summit central costs) of £6.2 million (US$10.5 million) for the year to June 30, 2014, representing a 7.3x multiple on adjusted EBITDA.
Separately, Euromoney announced that revenues were down 6% in the second quarter, blaming sterling’s 10% appreciation against the US dollar over the last year. It said that underlying revenues which exclude the impact of currency movements and acquisitions were in line with last year. In the announcement, Euromoney did not break out revenues for subsidiaries BCA and Ned Davis Research.
Euromoney said that challenging market conditions have continued, with the pressures on the investment banking sector, particularly fixed income trading, showing no signs of abating, more than offsetting improving conditions in the the asset management industry.
Euromoney does not expect significant improvements in revenue trends until the banking sector improves.