Acquisition of Oberon: Management has previously highlighted its appetite to increase acquisition activity as one part of the strategy to create a ‘Bigger Bloomsbury’, and today’s announcement provides evidence of this coming to pass. Bloomsbury is to acquire drama publisher Oberon for £1.2m, to bolster its already strong footprint in this subject with leading content in the contemporary drama field. The deal is expected to break even in its first year, and be earnings accretive after that given synergies coming through. Oberon generated revenue of £1m in calendar 2018. Academic & Professional expansion continues: The Academic & Professional division has been growing in importance in recent periods given its strong organic growth trajectory, but the focus on acquisitions here will help the group continue to diversify away from its historic origins in Consumer. We believe this acquisition – albeit small – is a perfect demonstration of management’s strategy, with an attractive purchase multiple yet significant opportunities to cross-sell the content across its wider customer base. High-quality profit growth: Although more acquisitions may not be imminent, we would expect more deals over time as Bloomsbury seeks to capture the optionality from its net cash position. More broadly, whether through acquisitions or the recent joint venture in China, we believe the company continues to deliver on its strategy to build a resilient, structurally growing, cash generative profit stream. This warrants a higher multiple, in our view.