Relx Group agrees to buy UK based SciBite for £65 million
- Relx Group agrees to buy UK based SciBite for £65 million.
- The European group's revenue slid 10% in the fiscal H1.
- Relx decided in favour of sustaining dividend payments.
Relx Group plc (LON: REL) has been committed to expanding its footprint in digital analysis in recent months. In an announcement on Friday, the European information group said that it had struck a deal to buy SciBite; a UK based big data analytics provider that primarily works in the healthcare industry and specialises in the niche of pharmaceutics.
Shares of the company are currently less than 1% up on Friday. At £17.30 per share, Relx is less than 10% down year to date in the stock market after recovering from an even lower £14.82 per share in March. Choosing a stockbroker as a beginner can be hard. Here’s a guide to help you pick your stockbroker easily and start trading on the stock market.
Relx took a hit due to COVID-19 in recent months
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Relx started as a traditional media publisher. Over time, it transformed into a data and analytics firm that serves multiple industries. Sources confirmed on Friday that the agreement between Relx and SciBite is valued at £65 million.
Relx took a significant hit in recent months due to the Coronavirus pandemic that has so far infected more than 320 thousand people in the United Kingdom and caused over 41,000 deaths. The historical performance of the British corporate group, however, has remained encouraging. It has announced organic growth for several years in a row and multiple acquisitions in the data assets and analytics space. But the group said earlier this year
Founded in 2011, the Cambridge-based SciBite helps customers improve their research and development related decisions via analysing text and content from a vast pool of resources and offers scientific insight.
Relx published its H1 financial update in July
Earlier this year in July, Relx said that its revenue in the first half of the current fiscal year came in 10% lower on a year over year basis. It attributed the decline to COVID-19 that cancelled corporate events and meetings in recent months that disrupted operations at its exhibitions arm.
Its operating loss on an adjusted basis was reported to £117 million in the first six months of the year. Revenue, on the other hand, tanked from £3.89 billion last year to £3.50 billion in the fiscal H1. The company’s board, however, decided in favour of sustaining dividend payments.
At the time of writing, Relx has a market cap of £33.48 billion and a price to earnings ratio of 26.44.