Paragon Publisher In Management Buy-Out

Venture Capitalist 3i has today announced a £14 million management buy-in of Paragon Publishing, which will fuel expansion of the publisher and spawn further magazine launches. Based in Bournemouth, Paragon publishes consumer magazines for users of video games, internet surfers and computer enthusiasts, and has 14 regular titles including Play, PowerStation, and 64 Magazine.

3i has invested £5.3 million in share capital and loans to acquire a majority stake in the company, with additional funds raised from the Bank of Scotland. The group also invested in Paragon in January 1998, providing the publisher with £600,000 of equity funding.

Mark Simpson leads the management buy-out team as managing director, and Clifford Jakes remains as non-executive chairman. Mark Simpson commented: “We have ambitions to expand the business aggressively in these and related markets and we will look to expand our interests through a steady programme of new launches and further acquisitions. We aim to build our own publishing content on the internet as well as strike relevant business relationships with many of the major portal sites, ISPs etc….Beyond that, the management team remains unchanged and it is therefore business as usual.”

Paragon Publishing: 01202 299 900 3i: 01703 632 044