M&A Scorecard - December 2007
Up-to-date compilation and analysis of recent magazine and media deals.
Seller: James Informational Media
Sale Price: $5 million est.
Revenue Multiple: 1X
The deal behind the deal: Randall-Reilly, a Tuscaloosa, Alabama-based b-to-b publisher serving the transportation and construction markets, has purchased Better Roads and Aggregates Manager from James Informational Media. The two titles generate about $5 million and the four-person management team will remain in place as equity owners.
The assets are intended to bolster Randall-Reilly's Construction Media Group, which already covers the equipment and landscape care markets.
The deal coincides with the two-year anniversary of CEO Mike Reilly's estimated $75 million buy-out of Randall Publishing. Since then the company has grown about 30 percent-half via acquisition and half organically. Investment bankers M.C. Alcamo & Co. Inc. represented James Informational Media in the deal.
Our panel says: "Reilly's in a good position to encourage growth from the James titles. That's a market that will see a significant influx of spending in the next few years."
Seller: Environmental Business Information
Sale Price: N/A
Revenue Multiple: N/A
The deal behind the deal: ZweigWhite Information Services--a management consulting, information and education source for the design and construction industry--acquired the Environmental Business Journal (EBJ), the EBJ Summit and a number of proprietary research reports associated with the EBJ from parent company Environmental Business International (EBI). The products will be integrated into ZweigWhite's Business Intelligence division, which serves the architectural, engineering, construction and environmental industries.
Grant Ferrier, founder of EBI, will be a consultant to ZweigWhite. George Stubbs, current editor of EBJ, will continue to in his position. Ferrier and Stubbs will work together to launch the Climate Change Business Journal, which was not included in the acquisition.
Our panel says: "The deal is a good fit for ZweigWhite and it's a market that's getting a lot of interest."
Sale Price: $58 million
Revenue Multiple: 14X
The deal behind the deal: Needham, MA-based IT publisher TechTarget announced that it acquired IT search resource KnowledgeStorm for $58 million, including $52 million in cash and 359,820 shares of unregistered common stock. The Jordan Edmiston Group represented KnowledgeStorm in the deal.
"Our preliminary projections are that KnowledgeStorm will contribute revenues of $12 million to $14 million and adjusted EBITDA of $4.5 million to $5.5 million during the first 12 months post integration," said TechTarget CEO Greg Strakosch in a statement.
Our panel says: "That's a hefty multiple, but it's what you're seeing for those kinds of companies.The deal makes sense."
Sale Price: $8 million
Revenue Multiple: 2X
The deal behind the deal: CMP has added another bolt-on to its Electronics Group by acquiring Portelligent, a provider of product teardowns to the electronics industry. The company was spun out of Microelectronics and Computer Technology Corporation in 2000.
The company will be integrated with the Semiconductor Insights division, itself purchased by CMP in July for $26 million. Like SI, Portelligent offers technology content on wireless, personal, and computer electronics via product teardowns and analysis. Combined, the two divisions will offer a searchable database of more than 40,000 components and integrated circuits.
Our panel says: "It's a good, strategic buy. The acquisition matches perfectly with the Semiconductor Insights deal."