Scoot Bags Loot To Create “Integrated Infomediary”

Scoot, the online business directory, has acquired free ads business Loot in a deal valuing the classified publisher at just under £190m. The acquisition will create what Scoot describes as “an integrated infomediary model, spanning directory, classifieds and entertainment services, accessible through multiple channels.” The terms set out for the deal involve a cash consideration of around £178m and the issue to the vendors of Loot of 5m Scoot shares.

Scoot operates a connect telephone service (freephone and mobile), an internet service and a business telecoms service in the UK, Netherlands and Belgium. It recently signed a deal with Vivendi SA to establish a joint venture to roll out the service across Europe.

Vivendi, which just announced it was off-loading BSkyB shares (see Sharewatch), will help finance the take-over by taking on Scoot shares valued at 230p per share and exercising existing warrants at 250p per share. Vivendi’s shareholding in Scoot will therefore increased to around 22%.

First published in London in 1985, Loot is now the UK’s leading free-ads paper and boasts the UK’s most visited classified website, www.loot.com. The combined management of Scoot and Loot are quoting £20m revenue for the third full year after completion. The transaction is subject to Scoot shareholder approval at an EGM.

Scoot: www.scoot.co.uk Loot: www.loot.com