TLA Worldwide acquires Aussie-UK rival for £13.1m

19th Mar 2015 11:26

Athlete agents TLA Worldwide has acquired Australia- and UK-focused rival Elite Sports Properties for up to US$19.5m (£13.1m) and increased its client base by 250 to more than 700.The AIM-listed group, which also confirmed that full-year results for 2014 were in-line with management expectations, will pay an initial $7.7m in cash and $2.6m shares, with a deferred performance-based consideration of up to $9.3m.The acquisition gives TLA a wider reach of sports and business, in particular more than 100 Australian rules football players, plus strong presence in cricket and sports merchandising, as well as adding respected management teams in Australia and a first presence in the UK.Executive chairman Bart Campbell said: "This deal strengthens TLA's business into the fourth biggest sports market in the world, where we are already well positioned with the launch of the International Champions Cup in Australia this July."In addition, it enables TLA to expand our offering in the UK for the first time."ESP delivered revenues of $7m and profit of $1.5 in the year to June 2014.House broker Numis, as a result, has raised its pre-tax profit forecasts for 2015 from $12.3m to $12.7m, but kept its earnings per share estimate at 6.9c due to the adverse movement of the Australian dollar over the past 6 months and TLA reporting in US dollars. For 2016 it now sees $14.2m PBT and 7.7c EPS.