Ascential buys Flywheel Digital for $60m
ASCENTIAL
£3.11
17:30 19/04/24
Specialist information company Ascential said it had bought Flywheel Digital, a US-based provider of managed services to consumer product companies trading on Amazon, for $60m in cash plus earn out payments payable over three years.
Flywheel primarily serves large-scale US consumer product companies, with more than 70 customers and more than 90 staff based in Baltimore and Seattle.
Ascential said it was paying out of existing cash reserves using capital released from the sale of its exhibitions business.
In the year ended December 2017, Flywheel grew its revenue by more than 150% and delivered unaudited profit before tax of $4.8m. It had gross assets of $23.9m at December 2017, Ascential said, adding that the transaction is expected to be earnings accretive in the current financial year.