The Hearst Magazines and Condé Nast joint venture — PubWorX — has acquired ProCirc, a Florida-based publishing services company with more than 50 publishing clients across more than 250 titles. The deal also adds more than 18 million readers to its service base.
Terms were not disclosed. However, ProCirc’s clients include a list of notable magazine publishers, including Bonnier, Rodale, Outside Magazine, and New York Media.
“ProCirc is a company we have long admired for its strategic, analytical approach to circulation management,” says PubworX CEO, Al Perruzza. “Both PubWorX and ProCirc have strong industry and supply-base relationships, and together, we can provide even more personalized service to a broader range of clients, amplifying our ability to quickly deliver bottom line results for their businesses.”
According to both Hearst and Condé, PubCirc will continue to operate independently as a division of PubWorX. President and cofounder Cary Zel, and CEO Marc Passarelli will remain in their leadership roles at the company. Further, a company spokesperson tells min that sales teams will be integrated to increase productivity. And PubWorx will continue to look for opportunities for interdivisional synergies down the road.
PubWorX launched in February 2016 with the purpose of providing a range of services to small and large publishers in procurement, production, marketing, and circulation management, at scale. Essentially, it’s a one-stop shop that allows publishers to streamline resources and allow them to focus on their core business propositions, like content creation and audience and business development. It also saves publishers money by allowing them to work with fewer vendors. It's also a unique media partnership, with two of magazine media's largest private publishing companies teaming up to deliver publishing solutions to potential competitors across a range of categories.
This deal is significant because it further consolidates a shrinking marketplace of publishing services. Magazine media once had a vast network of service providers — from printers to fulfillment houses to circulation management companies, which ranged from small regional companies, to large national operations. But now, fewer players are left at the negotiation table, and those remaining may find it difficult to compete with large entities like PubWorX that can offer more robust, affordable solutions.