18th Nov 2008 07:02
18 November 2008 United Business Media acquires Xinhua PR Newswire for $6m
United Business Media Limited today announces that it has acquired full control of Xinhua PR Newswire, the largest corporate announcement distribution service in China from its partner, Xinhua Finance, for a cash consideration of $6m. Under the terms of the acquisition, UBM will also acquire Xinhua Finance's corporate announcement distribution businesses based in Hong Kong, Singapore and Taiwan.
Xinhua PR Newswire (XPRN) was established in 2002 as a marketing alliance between PR Newswire and Xinhua Finance to provide a global best practice corporate announcement, market disclosure and distribution services to customers based in China. Under the terms of the agreement, Xinhua Finance was responsible for the day-to-day operations of XPRN while PR Newswire provided the distribution platform, marketing and strategic direction. The business is now China's largest corporate announcement distribution service, assuring its publicly-listed customers' full compliance with LSE, NYSE, AMEX and NASDAQ disclosure requirements, and enabling them to communicate with a network of more than 9,000 journalists representing some 3,000 agencies in China.
Under the terms of the agreement, PR Newswire will acquire the whole of XPRN's China operation, based in Beijing with offices in Shanghai and Shenzhen. The business will be rebranded as PR Newswire China. PR Newswire will also acquire Xinhua Finance's corporate announcement business in Hong Kong, Singapore and Taiwan. This business will be rebranded as PR Newswire Asia. The businesses' executives and senior management will remain in their current positions. In total, the combined operations employ around 50 people. In 2007 the acquired businesses generated revenues of around $4m. The acquisition is expected to meet UBM's cost of capital threshold in its first full year of ownership.
Charles Gregson, Chief Executive Officer of PR Newswire said:
"In less than six years since its launch, XPRN - to be rebranded PR Newswire China - has grown to become an essential messaging conduit in China, allowing companies, both public and private, to communicate their messages to investors and media in China and around the world. Today's acquisition offers a significant step forward for PR Newswire China and the companies it serves. Merging with PR Newswire's global operations will allow us to create opportunities to introduce new communications tools to China's business community, including broadcast and video services, ProfNet, media monitoring and EDGAR filing, while enhancing the marketing, customer service, and operational efficiencies of the entire business unit."
UBM's businesses in Asia have grown significantly over the past five years and are expected to contribute about 15% of UBM's total revenue in 2008, compared to just 7% in 2004. Employee numbers in the region have grown to more than 1,200 from around 600 in 2004. UBM's expansion in Asia has been driven by organic growth and by successful geo-cloning of flagship products, notably the CPhI (pharmaceutical ingredients), IFSEC (fire & security) and Food Ingredients events, as well as by continued investment in new products such as the successful launch of the Macau Jewellery fair, the Jewellery, Pearl & Gem Fair (Hyderabad) and the establishment of PR Newswire Mumbai in 2008.
EndsContactsMedia 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/Investors Email [email protected] Direct telephone +44 20 7921 5095 Nigel Wilson +44 20 7921 5019 Andrew Crow +44 20 7921 5940 Notes to Editors
1. About United Business Media
United Business Media is a leading global business media company. We inform markets and bring the world's buyers and sellers together at events, online, in print, and with the information they need to do business successfully. We focus on serving professional commercial communities, from doctors to game developers, from journalists to jewellery traders, from farmers to pharmacists around the world. Our 5,000 staff in more than 30 countries are organised into specialist teams that serve these communities, helping them to do business and their markets to work effectively and efficiently. For more information, go to www.unitedbusinessmedia.com.
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