Print and online business publisher Vitesse Media has acquired Blue Chip Publishing , owner of M&A Magazine, and is raising £500,000.

AIM-quoted Vitesse, whose products include Growth Company Investor and Business XL magazines as well as online services Growthcompany.co.uk, GrowthBusiness.co.uk and SmallBusiness.co.uk, is buying Birmingham-based Blue Chip from its present owners Steve Anstey and Andrew Chilvers. Vitesse, which lost £606,000 in the year to January on £2.3 million turnover, is paying a 'nominal' initial sum and assuming £165,000 of debt to acquire this complementary business.

Anstey and Chilvers will continue working for the enlarged group. In the year to April 2005, Blue Chip, which also publishes the online directory MAIN Index, lost £24,000 on £1 million revenues, but since then made operating profits of £19,000 in the 10 months to February 2006 .

If Blue Chip makes profits of more than £100,000 in the year to May 2007, share options will be granted to the vendors up to a maximum of 1.5 million should profits exceed £360,000. Sara Williams, chairman and chief executive of Vitesse, and finance director Clive Hall regard M & A Magazine as a 'very good fit' with Vitesse's own titles and argue Vitesse's events division can help Blue Chip's management extend the M&A brand.

To pay off Blue Chip's liabilities and fund future growth for the combined group, Vitesse is raising £500,000 at 23p in a placing supported by existing shareholders Artemis Venture Capital Trust and other investors. Some of the proceeds could be spent on new titles and events.

The last financial year was one of restructuring and new investment, as Vitesse moved to recoup £500,000 of revenue lost by the withdrawal of three contracts from Lloyds TSB. Apart from this, business grew by 25 per cent, online advertising revenues gained 50 per cent and website traffic increased by more than 350 per cent following site redesigns. Vitesse ended the year with £465,000 cash.

Vitesse shares are 1p up today at 24.5p, valuing the company at £3.4 million.

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