Trillium Partners Advises Electric Word On Its Disposal Of IGaming Business
Trillium Partners is pleased to announce that it has acted as the exclusive financial adviser to Electric Word plc (Electric Word) on the disposal of its indirect 70 per cent shareholding in iGaming Business Limited (iGB) to Clarion Events Limited (Clarion). The transaction valued the entire issued share capital of iGB on a cash free debt free basis at £19.7 million.
iGB is a portfolio of leading events brands designed for online gaming professionals, with must-attend shows for affiliates and operators including the iGaming Supershow, London Affiliate Conference, Barcelona Affiliate Conference and Financial Partners Expo. iGB also publishes magazines, directories and online resources that complement the events business. The flagship title, iGaming Business, provides insight and analysis on the online gaming industry.
Electric Word initially acquired its interests in sport and gaming in early 2006 for £2.7 million, and included as part of that acquisition was a controlling interest in iGB. iGB has grown strongly since 2006, particularly since developing a magazine and a series of conferences aimed at gaming affiliates with the assistance of a US-based joint venture partner. For the year ended 30 November 2014, iGB generated unaudited revenues of £5.4 million and EBITDA of £2.0 million after allocation of central costs.
Electric Word decided to sell its stake in iGB because it considered that iGB’s potential could best be realised within a business with a larger events portfolio and that online gaming had a different risk profile than that faced by its other operations. The sale is also in line with Electric Word’s strategy of concentrating on a smaller number of markets to enable the existing group to make more focused investments in developing higher-value digital products and related services.
Trillium Partners: (1) advised on sale strategy and tactics; (2) positioned the business for sale and assisted in the preparation of a full suite of marketing collateral; (3) prepared a long list of prospective buyers (including both trade and private equity parties); (4) led negotiations with prospective buyers and advised on the selection of Clarion; (5) advised on negotiations with iGB’s minority shareholder; (6) coordinated a full due diligence process and various legal and accounting work streams; (7) assisted in documenting the transaction and the circular to shareholders.
Julian Turner, Chief Executive Officer at Electric Word, commented:
“The sale of Electric Word’s gaming interests is an important strategic step for the group. It demonstrates the value that we have been able to add and it will enable us to develop further opportunities elsewhere. Trillium has advised us at every stage of the process with professionalism and insight and the outcome is a tribute to the excellent work of the whole Electric Word team, including the iGB management and our advisors.”
Philip Mastriforte, Managing Director at Trillium, commented:
“iGB is a highly regarded, fast growing events and information business with leading market positions and recognised brands. Clarion is the natural owner of this business and iGB is a great addition to its portfolio. We are delighted to have advised Electric Word on this disposal – at a very attractive price – which further adds to Trillium’s long track record of providing corporate finance advice to information & events businesses.”
About Trillium Partners
Trillium Partners is an independent mid-market firm that advises listed companies, private firms and financial sponsors on M&A and Private Capital raising transactions valued at £20 million to £500 million in the B2B Information Services and Events, Consumer Media, Learning and Development, and Marketing Services.
Over the last 30 years, we have advised our clients on a comprehensive array of transactions in the UK, Europe, USA and Asia, with an aggregate value in excess of £10 billion. Underpinned by deep sector knowledge and insight, our expertise extends from private acquisitions and disposals to public offers and raising capital from the private equity, family office, banking and alternative finance communities for working capital, business development, acquisitions and buy-outs.
For more information regarding this transaction, please contact Philip Mastriforte or Andrew Zelouf on +44 (0)20 3008 8375