Ebiquity - Disposal of AdIntel

Ebiquity has announced the proposed disposal of its Advertising Intelligence (AdIntel) business to Nielsen for £26m (a multiple of 1.2x sales and 5.9x operating profits). The AdIntel business is platform-based and made up the bulk of the group’s Market Intelligence segment. The disposal will allow Ebiquity to focus investment and resources in growing its tech-enabled consultancy practices (MVM and MPO), which have historically been faster growing. The pre-close trading update indicates that after a difficult H117 in the US, progress has been made and growth ex-US has been good. Our forecasts are currently being updated.