Penton Scales Tech Portfolio with iNET Acquisition
Deal gives Penton instant traction in tech market.
Penton acquired West Chester, Ohio-based iNET Interactive last week in a deal that, according to Penton CEO David Kieselstein, doubles its presence in the tech sector. iNet's product portfolio is primarily digital properties and events—a mix that mirrors Penton's go-forward product strategy.
Terms of the deal were not disclosed, but the 13-year-old iNET reported $14 million in revenues for 2014, up from $5.3 million in 2010, for its Inc. 5000 fastest-growing companies profile.
iNET's media platforms—discussion forums, events, online publications and digital resources—target the data center, cloud infrastructure, performance marketing and consumer tech markets.
Included in the deal are about 2 events, 10 websites and an association, AFCOM, which has 40 chapters and 4,500 members.
While Penton already has some technology properties, including MSP Mentor, The VAR Guy and IT Connections, this deal instantly scales the company's position. "A core element of Penton's strategy is creating scaled positions in advantaged sectors," says Kieselstein. "The acquisition of iNET allows us to take immediate advantage of the rapid growth being experienced in the cloud, hosting and data center segments."
iNET's 50 employees will continue to operate out of the company's West Chester headquarters. CEO Troy Augustine and vice president of corporate development Mark Sancrant will be leaving iNET following the deal.
Penton expects 70 percent of revenues and 80 percent of EBITDA to come from digital, events and marketing services in 2015.