The total purchase price amounts to up to approximately EUR 8.2 million on a cash and debt free basis (subject to any post signing adjustments), with an initial consideration of approximately EUR 3.9 million being paid in connection with closing of the acquisition and an earn-out consideration of up to approximately EUR 4.3 million to be paid before the end of January 2024 subject to certain targets being met. The purchase price will be paid by way of a combination of cash and newly issued Readly shares.
France is the largest magazine market in Europe and including newspapers it is estimated to be valued at around USD 7.2 billion in 2021, with a digital penetration of approximately 30 per cent, says Readly.
Through the acquisition, Readly adds a French portfolio of more than 1,000 magazines and 300 newspapers from around 280 publishers.
The acquisition will strengthen Readly’s European category position, with a total offering of over 6,000 magazines and newspapers from over 1,000 publishers.
According to Readly, the journey in France will benefit from the combination of Toutabo’s leading position, local expertise and strong relationship with publishers and commercial partners, and Readly’s tech resources, product development, global reach, and capabilities to create growth. The acquisition marks the next step in Readly’s growth journey and will over time support Readly’s financial targets, says the company.
Entering the French market has been a strategic priority for some time
Maria Hedengren
“Entering the French market has been a strategic priority for some time. Through the acquisition we establish a leading position in France overnight with a local team, strong relationships with publishers and great commercial partners. With leading positions in the major European markets we are well positioned for continued growth and expansion. We are thrilled to offer our subscribers an unparalleled European content portfolio now also including best-in-class French titles. The whole team is eager to provide publishers with global reach, increased revenue and a gold mine of insights, as well as partnering up with other companies to bring quality journalism closer to consumers digitally,” says Maria Hedengren, CEO at Readly.
Toutabo’s content portfolio includes global magazines such as Cosmopolitan, GQ and Vogue, as well as popular national brands such as Paris Match and Society. Furthermore, the portfolio includes highly regarded newspapers such as Les Echos, Le Journal du Dimanche, and Libération. The portfolio also includes international titles such as the international edition of The New York Times. The portfolio will enable Readly to attract French speaking consumers in existing markets across the world and empower French publishers to further monetise their content and increase their digital footprint, says Readly.
“We are thrilled to join a pioneering European category leader like Readly. I am convinced that Readly’s global portfolio of content, worldwide reach and product capabilities, will bring exciting growth opportunities and accelerate the digital transformation of the magazine industry. Our shared ambition to make quality journalism easily accessible for a digital audience will ultimately result in increased readership of French magazines and newspapers, both in France and in other French speaking markets. I look forward to joining forces with the Readly team,” says Jean-Frédéric Lambert, CEO at Toutabo.
Toutabo is a leading French subscription provider with a strong B2C and B2B offering mainly focusing on digital subscriptions of magazines and newspapers through the digital subscription and all-you-can read app ePresse. In 2020, the company reported net sales of approximately EUR 6.6 million, a gross margin of 35 per cent and an EBITDA of EUR -173 thousand. Toutabo has 14 employees and is headquartered in Paris.
You can find out more about Readly UK in our Publishing Services Directory.
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