United Business Media acquires 70% stake in Sign China tradeshow
International media firm United Business Media (LSE: UBM) has expanded
its trade-show and conference operations with the acquisition of a 70%
stake in the Sign China tradeshow for up to US$14.6m and the E Commerce
Expo in London for an initial £0.6m
Sign China was launched in
2003. The tradeshow exhibits sign, advertising and visual communication
equipment as well as advanced printing and engraving technology. Under
the terms of the deal, UBM has paid an initial US$10.7m, with a further
US$3.9m in performance-related payments.
The company said that
the 2010 Sign China which is held in Guangzhou had more than 1,000
exhibitors occupying approximately 70,000 square metres, 15% more than
last year's show. According to UBM around 55,000 advertising industry
professionals visited this year's show.
"The acquisition of Sign
China will add another industry-leading event to our portfolio, as well
as provide a springboard for UBM Asia's further expansion into South
China and beyond”, UBM Asia president & CEO Jime Essink said. “The
addition of Sign China complements our recent launch of Technology for
Marketing & Advertising China and helps us build a comprehensive
group of media products for the Chinese advertising industry".
The
company said the acquisition is anticipated to exceed its cost of
capital criteria in its first full year of ownership. Sign China employs
20 staff and generated revenues of more than US$4m in 2009.
The
acquisition gives UBM’s Asia division further exposure to China's $74bn
advertising market and the business will complement its recently
announced ‘Technology for Marketing & Advertising China’ event which
will be held in Shanghai in August 2010.
Elsewhere the E
Commerce Expo (ECE) was bought for an initial £0.6m which may increase
subject to the business’ future financial performance. The Expo is a two
day exhibition dedicated to e-commerce and online retailing, this
year’s event will be held in October at Olympia, London.
The
business will be integrated into UBM’s Live division. The acquisition
also includes E Commerce Expo North, an annual exhibition held in
Manchester.
"The E Commerce Expo and awards are attractive events
that have a natural fit with UBM's existing Customer Management
Portfolio, specifically in the digital business sector. They provide
excellent synergies with our Internet World and Technology For Marketing
& Advertising shows, which will enable us to further leverage
content and networking opportunities for our communities", said UBM Live
chief executive Jane Risby Rose.
The exhibition covers all
aspects of e-commerce, including acquisition, conversion, fulfillment
and retention, according to UBM it is the only dedicated event of its
kind in the UK. Last year’s event attracted over 4,000 attendees. In
2009, ECE generated revenue of £0.8 million, and like ‘Sign China’, the
acquisition is expected to exceed UBM's cost of capital criteria in its
first full year of ownership.
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