Progressive Digital Media (LON:PRO) told investors it is in advanced talks over the potential acquisition of a provider of healthcare business information.
GlobalData Holding, a private company currently owned by Mike Danson and Wayne Lloyd, could be acquired as part of an asset swap, the AIM company revealed.
Danson, currently Progressive Digital Media’s executive chairman, will subsequently take the role of group chief executive with current non-executive director Bernard Cragg becoming chairman.
Lloyd, who is currently GlobalData’s chief executive, will be appointed as managing director of the group’s US operations with specific responsibilities for GlobalData's Healthcare business.
It would see Progressive Digital Media issue Danson and Lloyd new shares, representing 34.2% of the company, and would see non-core business assets including its business-to-business print assets transferred to the sellers of GlobalData.
The company, in a statement, highlighted that the deal would add ‘a third industry vertical’ to the group’s existing business information proposition.
“The board believes that the acquisition, coupled with the disposal, would be consistent with the group's strategy of focusing on business information and exiting from non-core products and sectors.
“The expected net effects of these proposals would be to improve both the quality and visibility of earnings as the Group increases the subscription mix and focusses on scale verticals.”
The AIM quoted company would subsequently be renamed GlobalData Plc.
Progressive Digital Media shares gained 4.9% following the announcement, up 12.5p to 267.5p each.