Friday, 16 May 2008

Alterian is disclosed as Mediasurface buyer

I've already declared my interest as an (indirect) shareholder in Mediasurface via Elderstreet- Mediasurface soars on bid approach.

Today Alterian has emerged as the bidder with a 15p bid - 9p cash plus 6p in Alterian shares. That's a value of c£15m. Alterian is raising £13.2m in a placing.

Both companies announced their results today. Alterian's full year results to March show revenues up 38% £19.3m and PBT profit doubled to £4.0m. Mediasurface has issued its interims which show revenues up 17% to £7.1m and a pre-tax loss of £0.1m. So the two companies are not too different is size - but a world apart in both profit performance and valuation. Alterian £68m, Mediasurface £18m.

Although I see the logic of the deal for both parties, personally, I'm very disappointed that Mediasurface has only attracted this valuation. I had such high hopes for the company right from the earliest investment in 2000. It was the mis judged and executed entry into the SME market what done for them. Still, I guess it's a done deal now so I'll have to close that book and move on.

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