Buyer: 1105 Media
Seller: 101 Communications, Stevens, Post Newsweek Tech and Contingency Planning and Management Price (combined): $134 million est. (101, Stevens, Post Newsweek Tech; NA for Contingency) Date: April (101 and Stevens), November (Contingency), December (Post Newsweek)Takeaway: Four acquisitions in 2006 (starting with the huge payout for 101 Communications) turned the $75 million 1105 Media into a $110 million giant in 2006. Is the company growing too fast? Not according to 1105 CEO Neal Vitale, who returns to publishing after nearly eight years.
With back-to-back acquisitions of 101 Communications, a $53-million company focused on the IT market, and Stevens Publishing, a $20-million company focused on health and safety markets, newly formed 1105 Media grew rapidly. The payout was high for both companies, estimated at $74 million and $30 million respectively.
Many industry insiders anticipated growing pains over the rapid growth of the newly-created company, supported by Nautic Partners and Alta Communications. But back in April, when asked about what the rest of the year would hold, CEO Neal Vitale said at the time: "It won’t be two deals a week. It’s time to focus on integrating these for a while."
In November, 1105 purchased the Contingency Planning and Management Group, a producer of e-newsletters, conferences and other products, from Arlington, Virginia-based investment group MCG Capital Corp.’s West Coast WirelessLines. Shortly after came the estimated $30 million acquisition of Post Newsweek Tech Media from The Washington Post Co., which includes four magazines, online products and a trade show, for an estimated $30 million.
In January 2007, 1105 announced two more acquisitions: Fawcette Technical Publications, publisher of Visual Studio and producer of a number of international trade shows, and The CPM Group, producer of conferences and information products for the business continuity, emergency management and security fields.
The company appears to be stretching its arms across a number of different markets, dipping into government, IT, security products, office equipment, medical products and health and safety. "We want to continue to grow and to deliver compelling content to our readers and strong performance to our investors," Vitale told Folio:. "And we will continue growing through new launches and through acquisitions."
Comments: I think 1105 viewed 101 as a good ﾑplatform’ from which it could expand with add-on acquisitions. They appear poised to build a diversified b-to-b magazine, events and Internet business. I would expect to see additional acquisitions in new markets…They paid a healthy premium to get into the government market. But that’s not saying it’s a bad deal, the government is as stable as they come.