Two Deals Described as Sidetracked
With concern about the debt markets rising, and where the whole magazine M&A community is scrambling to get deals done on somewhat favorable terms, it becomes noteworthy when deals fail to close promptly.
Now, in some corners of the M&A world, players are asking about the status of a couple of deals in particular that were said to be in the final stages of completion and then hit a bump. The first is the sale of HC Pro, the 21-year-old private-equity-owned healthcare media company that has been on the block since about the beginning of the year. And the second is the IT research company Knowledgestorm, which is owned by management and venture capital, which has also been on the block since the first quarter.
In the case of HC Pro, sources tell Folio: Alert that a deal was in the final stages with prospective buyer Wachovia but then became sidetracked, and now the company has been brought back to market. "HC Pro attracted a lot of business, but now they are going back to the other prospective buyers," one source said. Another source described HC Pro’s lines of products as "too diversified with a strained rationale for synergy among some of the lines of business, although it appeared well run."
Meanwhile, in the case of Knowledgestorm, a source told Folio: Alert that Dow Jones offered the highest price for the business, but that it then became sidetracked, perhaps as Dow Jones was focused on the pending News Corp. takeover. "CMP would have been the natural strategic buyer," the source said. "But Dow Jones gave them the higher price, and then it was put on hold."
"These were both high-profile, bread-and-butter deals," the source said. "These are both good solid companies serving attractive markets."