Next Fifteen Communications Group PLC - Recommended Offer for M&C Saatchi – Trading update
Next Fifteen has announced a Recommended Offer to acquire M&C Saatchi PLC. The Offer comprises 40p in cash and 207.2p in Next Fifteen equity and values M&C at an aggregate c.£310m. Based on current consensus estimates for M&C and guidance previously issued by M&C, we estimate the FY22 and FY23 exit PE multiples for M&C to be c.19x and 14x respectively pre post acquisition synergies. If we adjust for the cash component of the consideration, the acquisition, if completed, looks to be materially earnings enhancing for Next Fifteen. M&C shareholders will represent c.17% of the enlarged share register.