The publisher of Holyrood politics magazine is in talks with a software and business intelligence firm over a possible merger.
Dods Group, which is also behind the UK Parliament’s The House magazine and Politics Home website, said it is in “advanced and exclusive discussions” with the Merit Group about a combination of the two groups.
It said any transaction would be financed by a combination of debt and equity in addition to its existing cash resources.
No further information has been provided but there has been speculation that Dods could fund a deal by raising around £15 million from investors and borrowing £20 million.
In January, Dods said “unprecedented political uncertainty” had hit trading in its financial year to March 31.
With fourth quarter revenues forecast to be lower than anticipated and increased costs, it now expects to report a loss before for the year.
The London-based group stressed it continues to hold “material cash reserves” and has no debt. As at 31 December 2018 the group held £7.3 million cash.
Dods’ largest shareholder is entrepreneur Lord Ashcroft, former deputy treasurer of the Conservative party.
