Digital Platform ePals Acquires Carus
$15 million cash and stock deal includes Cricket Magazine Group.
In order to aid its move into the home subscription market, educational digital platform ePals Corporation acquires Carus Publishing Company, along with its magazine, book and retail assets. Under terms of the deal, ePals will pay $5 million in cash and $10 million in stock and will merge Carus into an indirect subsidiary.
Carusâ€™ 2010 revenues were $16 million and EBITDA was just under $1 million. The companyâ€™s net loss in 2010 was about $270,000.
Carus Publishing Company includes the Cricket Magazine Group, Cobblestone Publishing and Open Court Publishing divisions. The Cricket Magazine Group houses 14 titles for children aged up to 14 years. Consumer subscriptions total 300,000, with institutional subscriptions bringing in 80,000 subs. The acquisition also includes Carusâ€™ Ladybug iPhone app, as well as a content licensing business with three localized Chinese publications.
ePals, which went public earlier this year, will have ownership of 600,000 paid subscriptions upon completion of the acquisition; this in addition to 7 million registered users in classrooms and homes in over 200 countries and territories. The companyâ€™s current content partners include National Geographic and the Smithsonian Institute.
ePalsâ€™s digital Global Community is represent by brands like email program SchoolMail, communication and collaboration tool LearningSpace and e-mentoring program In2Books.
Carus launched in 1887. Its flagship magazine, Cricket, debuted in 1973. In addition to its magazine and book sector, Carusâ€™ portfolio also includes crafts, toys and gifts.