Global events business Hyve has agreed to acquire 121 Group Limited and 121 Partners Limited, an omnichannel meetings programme organiser focused on the mining sector across EMEA, North America and APAC. The initial consideration is US$28m (£20.7m) and the estimated total consideration after earn-out is likely to be at least £42m.
Hyve also announced it is raising £14.79m through a new ordinary shares placing representing approximately 5.21% of the company’s existing issued share capital. The company also announced a direct subscription of 12,694,102 new ordinary shares by investment funds managed by Strategic Value Partners, LLC, representing approximately 4.79% of the Company’s existing issued share capital, to raise a further £14.26m.
The acquisition is likely to accelerate the development of Hyve’s omnichannel strategy, as 121 Group moved exclusively to online meetings during the Covid-19 pandemic, achieving higher margins and remaining profitable.
121 Group has benefited from first mover advantages, establishing itself as a leading one-on-one meetings provider for the mining investment communities since 2014. The acquisition will see the event transition onto Hyve’s facilitated meetings platform.
121 Group’s Cape Town meeting programme also complements the Mining Indaba event, and offers potential for synergies by creating an omnichannel platform for African mining and investment communities.
Hyve notes that the mining sector is underpinned by positive dynamics driving demand for investment into metals key to clean energy and better technology, such as copper, lithium and nickel.
The deal was brokered on behalf of 121 by UK-based Mayfield Merger Strategies.
Photo: Hyve Group CEO Mark Shashoua