5th Jul 2006 07:00
United Business Media acquires Commonwealth Business Media, Inc. for $152m Acquisition of business intelligence provider to international trade and transportation industry gives UBM a leading position in a new market United Business Media plc ("UBM") announced today that it has acquiredCommonwealth Business Media, Inc. ("Commonwealth") for a cash consideration of$152m.The acquisition of Commonwealth provides UBM with a strong position in a newvertical, the international trade and transportation business intelligencemarket. Commonwealth has an established portfolio of highly regarded integratedmedia products and proprietary business information databases. The transactionshows UBM continuing to execute on its strategy of investing both organicallyand in acquisitions to develop multi-media businesses that have leadingpositions in growing vertical B2B markets, and to develop a balanced portfolioof media businesses and revenue streams.Commonwealth is a leading specialist business intelligence provider to theinternational trade and transportation industry with comprehensive proprietarydata, news and analytical content which is integral to the "back office"workflow of more than 85,000 individual customers. Manufacturers, carriers,logistics companies and government agencies use Commonwealth's products for awide range of purposes including business development, competitiveintelligence, identification of new suppliers and markets, and defendingintellectual property. Headquartered in East Windsor, New Jersey and withoffices around the US and internationally, Commonwealth employs around 400people.In the year to September 2005, more than 60% of Commonwealth's revenues werederived from data and on-line products, with 88% of revenues being earned inthe United States. In the same period Commonwealth had revenues of $55.6m andEBITDA of $12.0m, with revenues and EBITDA being ahead of the prior year on apro forma basis by 6% and 14% respectively. The acquisition is anticipated tomeet UBM's 8% post tax cost of capital criteria in 2007.Commonwealth's market-leading products include on-line data services PIERSGlobal Intelligence Solutions and BACK Aviation Solutions, The Journal ofCommerce and its related portfolio of titles (both on-line and print) and anumber of directories covering international trade, rail and trucking markets.The company also publishes a range of magazines and custom directories servingthe U.S. seaport market. In addition Commonwealth owns a number ofindustry-leading events which contributed 4% of revenues in the year toSeptember 2005. The events include Breakbulk Conference and Exhibition, andTrans-Pacific Maritime Conference.UBM intends to support Commonwealth's existing growth plan and to leverageUBM's international reach in order to accelerate Commonwealth's development inmarkets outside the United States. UBM will also share its event expertise tosupport Commonwealth in taking advantage of the rich opportunities to furtherdevelop its event portfolio. Commonwealth will be integrated into UBM as a newdivision (see Notes for details of UBM's other divisions) with Alan Glass,Commonwealth's Chief Executive Officer continuing in his role and joining UBM'ssenior executive team, reporting directly to David Levin.UBM is acquiring Commonwealth from its owners who comprise RFE InvestmentPartners, Bariston Partners, the Economist Group, ABRY Partners andCommonwealth's management. The transaction is subject to anti-trust regulatoryclearance and is expected to reach completion in the next four weeks.David Levin, Chief Executive Officer, United Business Media said:"The acquisition of Commonwealth is an exciting and positive step forward forUBM and sees us expanding into a new vertical market while maintaining ourstrategic focus on acquiring and developing a balanced portfolio of mediabusinesses.Commonwealth is a great strategic fit for UBM: it is a leader in theinternational trade and transportation business intelligence market, a marketwhich is substantial and set to continue to grow as world trade expands.Commonwealth products like PIERS allow companies from a range of industries todetermine who is buying, who is selling, where and how goods are beingtransported. This is the vital information, news and analysis that Commonwealthcustomers rely on to transact their business, day by day.Commonwealth has rich resources both in its unrivalled historic and currentmarket intelligence and databases. As a data business, Commonwealth is a highlycomplementary addition to UBM's other events and print media businesses.I look forward to working with Alan Glass and his team to accelerate thebusiness's international growth, exploiting United Business Media's broad mediaexperience, expertise, international presence and financial resources." - Ends - ContactsMedia Peter Bancroft Director of Communications E-mail [email protected] Direct telephone +44 20 7921 5961 Chris Barrie Citigate Dewe Rogerson E-mail [email protected] Direct telephone +44 20 7282 2943 Mobile +44 796 872 72 89 Analysts Catherine Southgate Head of Investor Relations Email [email protected] Direct telephone +44 20 7921 5031 Notes to Editors 1. About Commonwealth Business Media Commonwealth Business Media, Inc. is the leading information provider to theglobal trade and transportation market with comprehensive proprietary data,news and analytical content. Its leading brands include PIERS GlobalIntelligence Solutions, BACK Aviation Solutions, The Journal of Commerce and anumber of directory databases covering the international trade, railroad andtrucking markets.In addition to its information data businesses, Commonwealth publishes eightmagazines, one newsletter and a series of custom-published directories servingthe U.S. seaport market. Through the Journal of Commerce Conference division,Commonwealth produces nine industry-leading events including Trans-PacificMaritime, China Trade & Logistics, Breakbulk Conference and Exhibition,Breakbulk Europe, and Trans-Pacific Air Cargo. Commonwealth is headquartered inEast Windsor, New Jersey, with offices in Newark, San Francisco, New Haven,Long Beach, Atlanta, Montreal, Toronto, Washington DC, Miami, Ft. Lauderdale,Tampa, Hong Kong and London.For more information, go to www.cbizmedia.comAbout PIERS Global Intelligence SolutionsPIERS maintains the most comprehensive database of timely, accurate, import andexport information on cargoes moving through ports in the United States,Mexico, Latin America and Asia. PIERS collects data from over 25,000 bills oflading every day and translates that raw data into meaningful businessintelligence that companies around the world use to: * find new suppliers, new markets and new business opportunities * benchmark performance against the competition * defend intellectual property against infringement and counterfeiting * understand international trade trends and forecasts * support strategic decision-making * arbitrate trade disputes For more information, go to www.piers.comAbout BACK Aviation SolutionsBACK Aviation Solutions (BACK) specializes in providing strategic and technicalconsulting and data information services to the aviation industry. BACK offersthe most comprehensive collection of aviation information and analytical toolsavailable in the air transport industry. BACK Aviation Solutions bringstogether city/airport traffic data, airline load factors, airline schedules,financials, operating statistics, route mapping, and fleet data and makes thisinformation available online.BACK's global client base includes scheduled and non-scheduled airlines,airports, financial institutions, tourist authorities, corporate and charteroperators, engine and airframe manufacturers, third party maintenance and otherservice suppliers, aircraft lessors and other entities that own, operate,service, market, finance or regulate the air transportation industry.For more information, go to www.backaviation.com 2. About United Business Media plc United Business Media is one of the world's leading global business informationcompanies. UBM brings together the world's buyers and sellers, helping theirmarkets work effectively and efficiently through PR Newswire's newsdistribution network and CMP's portfolio of events, print and on-linepublications. For more information, go to www.unitedbusinessmedia.comAbout PR Newswire - PR Newswire is the world's leading corporate newsdistribution service. Headquartered in New York, PR Newswire distributes newsglobally on behalf of over 40,000 customers, including many of the world's topcompanies and agencies, helping them take the latest news to the media, theinvestment community, and the general public. For more information, go to www.prnewswire.comAbout CMP - CMP's portfolio of more than 200 newspapers, magazines anddirectories, 200 websites and 300 events brings together buyers and sellersfrom a range of global sectors including technology, healthcare, the builtenvironment, lifestyle, fashion and ingredients.CMP operates globally through four divisions:CMP Technology - CMP Technology is the USA's leading high tech B2B mediacompany, providing marketing solutions for the global technology industry.Through its market-leading portfolio of trusted information brands, CMPTechnology has earned the confidence of more technology professionals than anyother media company. As a result, CMP Technology is the premier provider ofaccess, insight and actionable programs designed to connect sellers and buyersin ways that yield superior return on investment. For more information, go to www.cmp.comCMPMedica: CMPMedica provides information and education to healthcareprofessionals and patients around the world. It has a unique portfolio ofprofessional media products including newspapers, magazines, drug directories,electronic databases, websites and events. For more information, go to www.cmpmedica.com CMP Information: Operating in the UK and internationally, CMPi providesprofessional media solutions to around 20 industry sectors. Its productsinclude magazines, exhibitions, conferences, awards programs, informationproducts and websites, targeted at business professionals across a range ofmarkets such as the built environment, travel, licensed trade, agriculture,security and ingredients. For more information, go to www.cmpi.bizCMP Asia: Headquartered in Hong Kong with offices throughout the region, CMPAsia is a leader in exhibitions and online and print business informationpublications for Asian markets. Working with partners from around the world,CMP Asia stages a range of leading events which includes the largestinternational jewellery, leather and fashion, beauty and furniture trade showsin Asia, as well as the definitive health show for the Japan market. For moreinformation, go to www.cmpasia.comENDUNITED BUSINESS MEDIA PLCRelated Shares:
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