The consideration will be satisfied by an initial cash payment of £1.15 million with a further deferred performance-related consideration of up to £300,000, payable at the end of 2010.
The acquisition of LIR is a complementary addition to UBM Built Environment’s existing Barbour ABI business, facilitating expansion beyond ABI’s construction leads offering into the post-construction lead supply market.
LIR uses planning applications and a wide range of other sources to compile detailed information on relocation, refurbishment and business expansion projects taking place across the UK. LIR’s analysis identifies businesses in likely imminent need of products and services relating to new, relocating and expanding operations. LIR’s subscription-based customers are principally providers of goods and services to commercial properties, with a focus on the furniture, telecoms and recruitment sectors. LIR also provides data to its customers via its website, weekly HTML bulletins and newsletters.
LIR employs five staff and in the financial year to May 2010 generated revenues of £0.4 million.
The acquisition is anticipated to exceed UBM's cost of capital criterion in its first full year of ownership.
Adrian Barrick, CEO of UBM Built Environment, said: "I am very pleased to announce this acquisition, which will enhance our current product offering and complement UBM Built Environment’s existing ABI business. We are pleased to have acquired a high quality product that we can use to respond to our clients’ requests for additional product offerings in post-construction lead supply, as well as helping us to attract new customers. We believe that LIR will provide further synergies – for example, with our Property Week brand - and generate strong revenue growth in the future”.
