Future (FUTR) 500p

Gain to date: 26.6%

Original entry price: Buy at 394.88p, 21 Dec 2017

Specialist media outfit Future (FUTR) has announced a discounted rights issue to fund the acquisition of the bulk of Purch, the publisher of online computer hardware magazine AnandTech.

The $135.2m deal is being funded by a £105.7m fully underwritten rights issue at a 30% discount (based on the theoretical ex-rights price).

The acquisition will significantly expand the company’s footprint in the US and Future will look to integrate Purch’s publishing assets into its transferable platform. This makes money out of content through licensing, e-commerce and digital advertising. The transaction also brings in a separate advertising technology platform.

The company’s recent track record of getting value out of acquisitions is impressive but this is a step up in scale and as such may prove to be a slightly more complicated task.

However, we are willing to keep faith and look forward to an update on the integration process alongside full year results in November.

The business will first need to secure approval for the rights issue at a meeting on 5 August.

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