Nexus acquisition prompts Highbury to consolidate sales

Highbury House’s pounds 39 million acquisition of the business and consumer publisher Nexus Media Communications will result in a rationalisation of the combined magazine portfolio, as well as job losses.

Highbury House’s pounds 39 million acquisition of the business and

consumer publisher Nexus Media Communications will result in a

rationalisation of the combined magazine portfolio, as well as job

losses.



Highbury House chief executive Ian Fletcher admitted there were

opportunities for cost efficiencies in the combined company and that

there would be an impact on advertising sales with the development of

group selling for both companies titles. However, he added: ’We’re not

looking to poleaxe staff left, right and centre.’



The acquisition doubles the size of Highbury House and Fletcher is

looking forward to accelerating Highbury’s growth and increasing its

market share in sectors where the two companies have similar magazines,

such as the health market.



Fletcher also believes there are synergies to be gained from sharing

expertise. ’Nexus is experienced in organising events, which will be

useful to us. And we have considerable internet experience which Nexus

can benefit from,’ said Fletcher. ’We can also use our database

management skills to get more value from Nexus’ brands.’



Advertising revenue as a proportion of Highbury’s total revenue is

likely to diminish from two-thirds to just over half.



The deal will also mean some staff relocating but Fletcher said that the

buildings issue had not yet been thought through.



The acquisition is subject to the approval of Highbury House

shareholders.



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