Public Policy Holding Co Inc on Wednesday announced the acquisition of MultiState Associates, one of the largest US-based state and local government relations specialists, for an initial consideration of $22 million.
The US-based government relations and public affairs firm said the deal would be substantially and immediately accretive to underlying earnings with significant revenue and profit synergy potential through the referral of existing clients from the Public Policy network.
The $22 million deal will be funded $17.6 million in cash and $4.4 million through the issue of new shares in the company to the owners of MultiState.
Public Policy Holding said MultiState’s services are highly complementary to its strength in research and compliance adding to and enhancing the company’s existing broader client offering.
The firm separately said on Wednesday that it has entered into a $17 million credit facility.
Further payments are contingent on MultiState achieving profit growth targets between 2022 and 2027 taking the maximum payable under the deal to $70 million.
Public Policy also updated on current trading. It said strong trading momentum continued into the second half of 2022 and forecast revenue for the year of around $109 million.
Underlying EBITDA margin is seen in line with management’s expectations and the firm expects to pay a final dividend in line with its stated policy of distributing up to 70% of profit after tax.
Shares in Public Policy Holding closed up 1.5% at 137.50 pence in London on Wednesday.
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