Expansion in Academic: Bloomsbury yesterday announced the acquisition of ABC-CLIO, an established academic publisher in the North American market. The strategic attractions are clear in our view – it strengthens the footprint in North America generally, provides access to new markets within the region, and provides more content for Bloomsbury Digital Resources to sell across its global footprint. An implied transaction multiple of c.1.6x sales, and the expectation to be earnings enhancing even this year (ending Feb), make it financially attractive too. Strategy in action: Bloomsbury has delivered impressive organic growth in recent periods, but this demonstrates that its cash generation allows accretive M&A to support growth too. Although focus may be on the integration of recent acquisitions in the short-term, we forecast net cash growing to c.£37m by YE23E so we see scope for further acquisitions in the future. More broadly, the success of Bloomsbury investment can also be seen in the number of high profile awards won by their authors recently. Significant upside to go for: We increase revenue/PBT by 1%/2% in FY22E, and 6%/5% respectively in FY23E – this moves our target price up to 380p (from 370p). The recent pull-back now leaves the shares trading at <9x calendar FY23E EBITDA – we believe this is far too cheap given the structural resilience of Bloomsbury’s growth, the scope for consensus upgrades over time, and recent valuation benchmarks in the industry.