Media outfit Future PLC (LON:FUTR) has accelerated the payment of earn-outs to the management team of MoNa Mobile Nations, the company it acquired in March.
Future said the acceleration recognises the achievement of certain financial targets ahead of schedule.
Future, the company behind brands such as PC Gamer, FourFourTwo and Guitar Player, acquired Mobile Nations for an initial cash consideration of US$55mln with a further US$5mln in shares. In addition, a further variable deferred consideration up to a total value of US$60 million was agreed, subject to meeting financial targets based on the year ending 31 March 2020.
Future now expects those financial targets for the current fiscal year to be exceeded and has triggered a deferred payment to MoNa’s management team of US$55mln, split equally between cash and Future shares, that will go through on 28 February 2020.
Someone parked a Pokémon-emblazoned car outside of the @futureplc office so people would take a ???? of it. I guess I fell for it. #Pikachu #nyc #car pic.twitter.com/S9jn4zARe1
— Matt Swider (@mattswider) October 11, 2019
"Mobile Nations has delivered a stellar performance since we acquired the business in March this year, significantly beating the targets that were set at the time of the acquisition. We have therefore decided to accelerate the earn-out payments that are due to the management team so that the businesses can work together to deliver additional benefits across the Future group,” said Zillah Byng-Thorne.
"The brands we acquired with Mobile Nations have substantially strengthened our market-leading position in technology and deepened our presence in the US market. We are delighted that the team has committed to remain within Future to further leverage the complementary mix of content, community and commerce of the Mobile Nations brands, as we continue to expand our opportunities to monetise our significant US online audience," she added.