9th Dec 2008 07:00
9 December 2008 United Business Media expands further in China with acquisition of Sanguine Microelectronics
Complements existing TechInsights capability; will be integrated into new technical intelligence services business unit
United Business Media Limited today announces that it has acquired Sanguine Microelectronics from its shareholders on behalf of its TechInsights business (www.techinsights.com) for an initial cash consideration of $8m. A further deferred consideration of up to $9.5m will be payable over the next three years, subject to certain performance conditions. This is UBM's second recent acquisition in China and follows its $6m acquisition of Xinhua PR Newswire in November this year.
Sanguine Microelectronics (www.sanguine.com.cn) is a high quality provider of integrated circuit reverse engineering services and information with an established footprint in China, Korea, Japan and South East Asia, and a growing presence in Europe and North America. Sanguine has developed a suite of proprietary software-based analytical tools under the Matrix and Prisma brands to accelerate circuit extraction and analysis on behalf of its clients. Sanguine's customer base includes many of the world's largest electronics firms and complements TechInsights' existing customer base.
The acquisition of Sanguine reflects the continuing strategic development of UBM's businesses in technical and market intelligence products and services. Sanguine's services are highly complementary to TechInsights' IP-related businesses, Semiconductor Insights and Portelligent, and will further expand the capabilities and capacity of TechInsights in technical intelligence markets. Sanguine, Semiconductor Insights and Portelligent will be integrated to form a new TechInsights business unit, TechInsights Services, Data and Market Intelligence. This business unit will focus on providing professional intellectual property services, technical and market intelligence and data services, enabled by a unique set of proprietary workflow and analytical tools and services. The new business unit has pro forma 2008 revenues of around $35m and expected to achieve double digit annual growth.
In total Sanguine employs around 130 people at its headquarters in Shanghai, China and at its subsidiary in Montpellier, France. Sanguine also has local representation in Taiwan, Korea and Japan. Sanguine's 2008 revenues are expected to be over $4m. The acquisition is anticipated to meet UBM's 8% post-tax cost of capital acquisition criterion in its first full year of ownership.
Paul Miller, Chief Executive Officer of TechInsights said:
"Technical and intellectual property intelligence services for the electronics industry are a global, high value, high growth opportunity for TechInsights: we aim to be a global leader in this market."
- 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/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 6,500 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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