Catena Media has announced a further strengthening of its financial vertical, via the acquisition of US based premium equity service The Hammerstone.
The subscription stock analysis service, focused on the American market, is to be utilised to deliver content to retail traders on various platforms in the Catena Financial Services eco-system.
Catena details that the integration of Hammerstone is to play a crucial part in its global growth strategies, as well being a key aspect in its extension to new product areas.
Hammerstone, and its website thehammerstone.com, has built up a financial media product that allows its subscribers to obtain real-time news and analytics, giving them the edge on various stocks.
Per Hellberg, Catena Media CEO, commented: “The potential of this vertical, and for Hammerstone, is immense and will contribute to establishing our strong vision of positioning ourselves within the US finance services vertical and extending this globally.”
Regarding the details of the acquisition, Catena stated: “The initial purchase price, payable in conjunction with the transfer of the assets, amounts to an upfront payment of USD 5.0 million of which USD 2.0 million can be paid with newly issued shares in Catena Media at prevailing market rates and the remainder in cash.
“In addition, there is an earn-out of a maximum USD 2.5 million based on revenue performance over a period of 12 months, with 40 percent of the earn-out being payable in shares.
“The shares will be issued at a subscription price of SEK 137.32 per share, corresponding to the volume-weighted average price for Catena Media’s shares on Nasdaq Stockholm over a period of 30 trading days, up to and including 8 June, 2018.
“This means that a total of 127,440 shares will be issued, corresponding to approximately 0.23 percent of the shares and votes in the company. The shares will be subject to a lock-up period of 12 months as of the closing date of the transaction.”