Euromoney to acquire leading telecoms publisher and event organiser

Text size:

Thursday 15 September 2005

Euromoney Institutional Investor PLC ("Euromoney") announced today that it will acquire TelCap Limited, the publisher of the leading global telecoms magazine, Capacity, and the organiser of nine annual conferences.

Euromoney has initially acquired a 40% interest in TelCap for a cash consideration of £1.7 million, subject to audit of TelCap's accounts for the year to 31 January 2006. In addition, it has contracted to acquire four further tranches of TelCap's equity of 15% each in March 2007, 2008, 2009 and 2010.

These consideration payments are dependent on the audited profits of TelCap for the years to 31 January 2007 to 2010 respectively. The maximum consideration payable for 100% of TelCap is capped at £17.5 million. The acquisition will be financed from Euromoney's existing borrowing facility.

TelCap was founded in 2000 by Mark Kemp and Rachel Jones who prior to this were both senior executives at Risk Publications. Capacity magazine, which they launched as a monthly in late 2000 and has a BPA-audited circulation of 5,291, focuses on the latest developments in the global wholesale telecoms sector and covers topic areas such as pricing strategies, connectivity issues, operational support services, risk management, network development, new telecom services and applications and last mile strategies. Its audience is the senior executives at telecom carriers and service providers who are responsible for managing their network businesses and the sale and purchase of telecoms capacity. The company's nine conferences have developed a strong name in this niche market. The biggest is Capacity Europe which began in 2000. There are also events in the US, Central & Eastern Europe, Asia, Latin America and Russia.

"We are delighted to acquire TelCap and to receive the continuing support of both Mark Kemp and Rachel Jones," said Richard Ensor, managing director of Euromoney. "TelCap is a strong and rapidly growing media business, and we are looking forward to working closely with the TelCap team to further their expansion around the world."

Commenting on the acquisition, Mark Kemp, CEO of TelCap, said: "We are delighted to be joining Euromoney, a leading media group, who we have long respected and are a proven success in global media businesses. Euromoney's resources will enable us to accelerate the growth and development of TelCap's products and help us to build a stronger telecommunications/ICT media business, which in turn will create key opportunities for both the business and our staff."

For further information, please contact:

Richard Ensor, Managing Director of Euromoney Institutional Investor PLC: London +44 207 779 8845. Email: rensor@euromoneyplc.com

Colin Jones, Finance Director of Euromoney Institutional Investor PLC:
New York +1 212 224 3930. Email: cjones@institutionalinvestor.com

Christopher Fordham, Development Director, Euromoney Institutional
Investor PLC:
London +44 207 779 8057. Email: cfordham@euromoneyplc.com