Reed Elsevier gobbles up Accuity

26th Sep 2011 07:04

Reed Elsevier, the publishing and business information giant, is to pay £343m in cash for Accuity Holdings, a US financial services compliance specialist.Accuity provides data solutions for the financial services industry and is seen as highly complementary with both Reed Elsevier's Bankers' Almanac and the financial services business of LexisNexis Risk Solutions. Accuity is essentially an online data business with subscription-based revenues, 95%+ customer retention rates and double digit revenue growth. The transaction is expected to pay for itself within three years although actual completion is dependent on some regulatory hurdles, so will probably take until the final quarter of 2011. The acquisition is expected to be earnings enhancing from the moment of acquisition.Reed Business Information Chief Executive Officer Mark Kelsey said: "Bankers' Almanac and Accuity are both strong brands with highly complementary products and strengths and excellent geographic fit. The combination of the two companies will enable us to offer customers much more comprehensive products and services to meet their developing needs." BS