Highbury House acquires Nexus

Highbury House Communications has consolidated its position as one of the UK’s fastest-growing publishers by acquiring business and consumer publisher Nexus.

HHC said the two companies’ core services were complementary and there would be “minimal redundancies” following the takeover. HHC is paying £30.6 million in cash and £8.7 million in shares for Nexus. It is proposing to fund the deal, which still has to be agreed by its own shareholders, through a £37.2 million rights issue.

The enlarged company will publish over 150 titles in the consumer, business-to-business and customer magazine sectors. It will also operate a range of specialist exhibitions, internet sites and a database management and marketing business.

Roger Patey and Stuart Fowlie, the chief executive and finance director of Nexus, are to stay with HHC, taking equity stakes in the business. Patey will become chief operating officer reporting to HHC chief executive Ian Fletcher. Legal & General, Nexus’ principal shareholder, is to take a 4% stake in Highbury House, where Fletcher is the main shareholder. He said: “I expect this acquisition to enhance growth of our publishing business and enable us to accelerate development of the enlarged group’s internet, database marketing and event organising activities.”

In the 10 months to October, Nexus recorded profits of £2.2 million on turnover of £26.2 million. Highbury House is estimating profits of not less than £3.4 million for the year to December 31, 1999.

Highbury House, which publishes Total Style, Women’s Health and What Video and is licenced to publish the UK edition of Sports Illustrated, is also developing an online audio-visual showroom, Electric City.