mergermarket

mergermarket announced it had signed a deal to be acquired by the Financial Times Group, a division of Pearson.

The deal is expected to complete in September, once Pearson has satisfied requirements to make two non-contentious regulatory filings in Germany and Ireland.

The consideration will be structured as an initial payment on completion, with a further payment to mergermarket shareholders in respect of surplus cash on the balance sheet. In addition, the management team and employee shareholders will participate in a significant earn-out, payable in March 2009 subject to the satisfaction of targets relating to mergermarket's cumulative EBITA for the two financial years ending 31 December 2007 and 2008 and to the achievement of certain synergies identified by Pearson and mergermarket management. Pearson will also be allocating a further sum to incentivise current non-shareholder employees and new mergermarket staff. The transaction values mergermarket at up to approximately £140m.

Canaccord Genuity acted a sole advisor to the shareholders of mergermarket.