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
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