Jun 27th 2012 - Edison Investment Research today published a report on Centaur Media (CAU.L, LSE:CAU, LON:CAU) entitled "Strategic Leap Forward". In summary, the report says:
The acquisition of Econsultancy, an information provider to the fast-growing digital marketing industry, is Centaur’s largest-ever deal. It adds 14% to our FY13 revenue forecasts and £0.9m (8%) to estimated (adjusted) PBT. Strategically, it is a big leap forward, taking the group further into higher-growth, higher-margin digital markets. Centaur is paying £12m cash upfront out of a maximum potential payout of £50m, with the deferred element dependent on future EBITDA growth. The deal enhances our EPS forecasts by 11% for FY13 (14% for FY14). Our estimated fair value range for the shares rises to 51-60p from 46-53p.
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