Hyve Group PLC (LSE:HYVE), the events company, has announced the acquisition of Fintech Meetup, a US-based fintech event organiser, for up to US$55mln (£41.8mln) and said it is reviewing "all options" for its business in Russia in light of the Ukraine conflict.
The group provided a trading update, saying that after reducing its portfolio from 269 events in 2017 to 63, revenue from non-Russian events increasing from around 50% in FY17 to 73% in FY19 on a pro forma basis.
It said average revenue per event had also increased by over five-fold on a pro forma basis
The consideration for Fintech Meetup consists of an initial payment of £3.8mln (US$5mln) and a contingent consideration of up to £38.0mln (US$50mln) payable in 2024 and 2025.
Hyve said several of its key opportunities for accelerating its omnichannel strategy are found in the rapidly growing fintech market, in which Fintech Meetup operates and it also expects the deal to facilitate its geographical expansion and diversification.
Simran Rekhi Aggarwal, one of the co-founders and co-vendors, will join the group upon completion of the acquisition and work with Hyve until April 2023. Johnathan Lear, president of Fintech Meetup, will also join.
Fintech Meetup generated US$1.3mln in revenue and made an EBITDA loss of US$3.8mln in the year ended December 2021, its first full year of operation, and Hyve expects revenue to more than double and EBITDA to be positive in the current calendar year.
Shares in Hyve, which have plunged 94% over the past five years, with a 37% decline over the last twelve months, jumped 10% to 63.3p on Friday morning.