Really clear communication of strategy by public companies is not a given, so when I see it, I take note. Bloomsbury has been following a very clear strategy for some time, acquire bolt on (though not necessarily small) companies that add value in areas the company is seeking to expand.
The companies acquired have generally had one or both of two key ingredients. The first of these is intellectual property that can be exploited cross-platform and which compliment Bloomsbury’s existing IP, often such companies have not yet taken full advantage of the web. The second ingredient is either a promising digital play or a digital play that has already shown promise. Hart seems to fit both those features quite well:
The acquisition is consistent with Bloomsbury’s strategy to increase its proportion of academic and professional revenues to 50% of total sales in five years’ time. Academic and professional revenues are more predictable and have lower related costs of sale with higher margins and are much less reliant on retail bookshop sales. Around 50% of Hart’s revenue is generated outside the UK, thereby increasing Bloomsbury’s benefit from the global book market. The acquisition will also enable the Company to further develop its e-book publishing and expand the Bloomsbury Professional digital suite of services.