Quadrant HealthCom Buys IMNG From Elsevier
Combined entity to be called Frontline Medical Communications.
Healthcare media company Quadrant HealthCom Inc. has purchased the International Medical News Group from Elsevier, Inc. Quadrant, which is owned by investment firm M.E. Zukerman, will use the deal to create a new company called Frontline Medical Communications under which the two entities will operate their individual brands. Combined, company revenues are now over $60 million.
By itself, Parsippany, New Jersey-based Quadrant publishes 13 medical journals, 24 websites and 10 events. In late 2009, the company bought four medical journals in the Dowden Professional Publications group from Lebhar-Friedman.
But with the IMNG deal, Quadrant greatly expands its brands and audience reach. Frontline Medical Communications will produce 29 publications in 17 market segments with a combined circulation of 700,000, say the companies. The group will also publish 125 e-newsletters, 35 websites and 14 live events.
IMNG president and CEO Alan Imhoff will remain in his role, joining Quadrant president and CEO Marcy Holeton, custom solutions president JoAnn Wahl and CFO Doug Grose in a combined 'Office of the President' which will oversee company operations. Stephen Stoneburn will become chairman of Frontline.
According to Stoneburn, the sale was not a typical auction process, though several other companies also looked at the property. M.E. Zukerman essentially launched the Quadrant business back in 1996 with the acquisition of Reed-Elsevier's U.S. medical publishing business, so the company had a leg up on the bidding thanks to its history with Elsevier.
"[IMNG has] strong publications with very good readership," says Stoneburn. "Even in contracting markets it has sufficient share that enables it to maintain profits when competitors can't."
By forming Frontline Medical Communications, Stoneburn says that the brands now have a more compelling ad sales story to tell agencies, who have been gradually whittling down their ad spend with medical publishers. "The emphasis right now is on combination rates and offers," he says. "It's clear that the large agencies that control medical advertising spending want to prune the number of people they do business with. The more we can come to them with efficiency stories, the more share we can take."
IMNG has a sales operation in Morristown, New Jersey, and the companies' two offices will be combined. IMNG's Rockville, Maryland editorial offices will remain in its location. Media bankers DeSilva + Phillips represented Elsevier in the deal.