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M&A Scorecard - October 2007



By FOLIO: Magazine Staff
10/02/2007

Yahoo continued its ad-network acquisitions with the purchase of Blue Lithium for $300 million in cash, which undoubtedly helped usher the deal through in the midst of a tricky credit market.

August 31

Buyer
Seller Sale Price Multiple
Canon Communications
Euromoney Institutional Investor <$10 mil. est.
N/A


The deal behind the deal:
Los Angeles-based Canon Communications has acquired Engel Publishing Partners from Euromoney Institutional Investor PLC—Canon’s fifth follow-on acquisition in the last two years. Engel is a b-to-b media company that serves the global pharmaceutical market and publishes such titles as Med Ad News and R&D Directions, and Web site PharmaLive.com.

The acquisition broadens Canon’s coverage of the country’s $1 trillion advanced technology-based manufacturing industry, Canon said. “With Engel, we add a strong b-to-b media group that offers excellent content for senior management of pharmaceutical companies across print, digital and live-event formats,” Canon CEO Charles McCurdy said in a statement. Media bankers DeSilva + Phillips represented the seller in the deal.

Our panel says: “They’re broadening the scope of their operations. There’s nothing wrong with this approach, it’s certainly the way the big groups used to do business.

August 31

Buyer Seller Sale Price Revenue Multiple
BNP Media
Ascend
$30 million est.
1X est.

The deal behind the deal: Ascend Media at the end of August closed on the sale of its Professional Services Division—17 magazines in the food, beverage and packaging spaces—to BNP Media. The Professional Services Division consists mainly of the former Stagnito Communications.

The division represents about 25 percent of the company’s revenue, CEO Cam Bishop said. Although it has had significant growth this year, it no longer fit with Ascend’s strategic direction, Bishop said, confirming June buzz that Ascend was interested in selling the division. “We are divesting our non-medical and non-healthcare assets to focus exclusively on medical and healthcare,” he said. “This is just a portfolio-management decision.” Ascend was represented by DeSilva + Phillips in the transaction.

Our panel says: “They say they’re focusing in healthcare, but I think it’s a move forced by a need to raise money.”

September 4

Buyer Seller Sale Price Revenue Multiple
Yahoo
Blue Lithium
$300 million
N/A

The deal behind the deal: In effort to increase its data analysis capabilities, not to mention increase its global ad network reach, Yahoo paid $300 million in cash for BlueLithium, a performance marketing company.

BlueLithium’s analytic and targeting capabilities are expected to enhance Yahoo’s ad network. BlueLithium will allow Yahoo to target its audience based on consumer interests; remarket ads to consumers who have interacted with an ad or Web page; and custom segmentation, among other capabilities.

Our panel says: “This is a good deal for Yahoo. They can use Blue Lithium’s data analytics capabilities to provide more information to their client’s campaigns. This was previously a weak spot for them.”

September 7

Buyer Seller Sale Price
Revenue Multiple
Network Communications
Apartment Publications of Louisiana
<$10 million
N/A

The deal behind the deal: Real Estate publisher Network Communications Inc. has acquired DGP’s Apartment Publications of Louisiana, a rental publisher.

Included in the deal were four titles: Apartment Directory of Baton Rouge, The Shreveport/Bossier City Apartment Directory, The Monroe/Ruston/West Monroe Apartment Directory, and Apartment Guide of Acadiana (Lafayette). The titles will be incorporated into NCI’s Apartment Finder brand, which serves 107 markets across the country.
Apartment Finder has expanded into 35 new markets via acquisitions and organic growth.

Our panel says: “It’s an obvious fit for NCI, and the apartment ad market is the one bright spot from what I can tell in the real estate market right now.

Buying? Selling? Know someone who is?
Submit M&A related tips and news to senior editor Bill Mickey.

By FOLIO: Magazine Staff
10/02/2007







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