Progressive Media reveals bold acquisition plan

The AIM-listed media group announced to the market that it was in advanced discussions to acquire GlobalData Holding, and to dispose of a number of non-core assets to the same vendor.

GlobalData is a healthcare business information provider, and at the time of the announcement was privately held by Mike Danson and Wayne Lloyd. It was expected that consideration for the acquisition would be satisfied through the issue of around 26m new ordinary shares in Progressive to the vendors, representing approximately 34.2% of the currently issued share capital.

The disposal - which would consist of a number of B2B print assets, and be to a separate private company also controlled by the vendors - would be in exchange for a £4.5m inter-company loan owing to Progressive pursuant to a guaranteed loan agreement.

"The acquisition of GlobalData and its healthcare business would add a third global industry vertical to the group's existing business information proposition, and would transform the company into a business information group expected to double its addressable market to an estimated USD$10.1bn", the company said in the announcement.

"The B2B print assets subject to the possible disposal currently provide marketing, advertising and online solutions to a wide number of clients operating in a number of (Progressive's) non-core industry verticals, including automotice, oil and gas, and hospitality", it added.

Progressive's board also proposed a name change should the proposal go ahead, to GlobalData plc. If terms were agreed between both parties, both the acquisition and disposal would require separate approval of Progressive shareholders in a general meeting.

At 16:40 GMT, shares in Progressive Digital Media Group were up 4.9% to 267.5p.