Future PLC (LON:FUTR) shares surged in lunchtime trading Friday after it acquired US-based publisher Mobile Nations.
The media group it would pay US$55mln in cash and US$5mln in shares for Mobile Nations, a digital publisher focused on consumer electronics, adding that there was also a deferred payment of up US$60mln that would be paid subject to meeting certain financial targets in the year ending 31 March 2020.
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Together, the total consideration for Mobile Nations amounted to US$120mln.
Future added that the transaction was expected to be earnings enhancing in the current fiscal year and “materially” enhancing in the first full year after completion.
Mobile Nations, whose publications include Android Central, iMore, Windows Central, and Thrifter, has a monthly audience of around 40mln.
Zillah Byng-Thorne, chief executive of Future, said that the acquisition would “further strengthen” the company’s position in the technology, as well as extending its presence in the US market.
“We already have an established commercial relationship with Mobile Nations through its longstanding partnership with Purch, which we acquired in September 2018. The addition of Mobile Nations' brands will deepen our presence and expand our opportunities to monetise our significant US online audience,” the CEO added.
Shares were up 10.5% at 758p.