Kiwibox.com acquires German social network Kwick!

October 5, 2011 — Fusion DigiNet

Kiwibox.com, a New York City based social network, has acquired the social network, Kwick! Community GmbH & Co. KG, a private German Limited Partnership and its General Partner Kwick! Community Beteiligungs GmbH for €7.1M, or approximately $10,000,000.

Kwick! is a European Social Network Community focused on the German-speaking market. With more than 10 million members and more than 2.5 Million Unique Users a month, this platform extends the Kiwibox marketplace toEurope. In addition, combined with the recently acquired Photobook-Community, “Pixunity.de,” this acquisition adds 2 Billion Page impressions a month to the Kiwibox.com network.

Founded in 1999, Kwick! had revenues in 2010 of approximately $5 million, and has been cash flow positive since inception.  Kwick! has 32 employees and uses a network of over 150 volunteers to moderate its website. Following this acquisition, Kiwibox.com expects to be cash flow positive for the fiscal year ending December 31, 2011. As part of the acquisition, the former management team at Kwick! has signed agreements to remain with the company.

“Kiwibox.com”, states Andre Scholz, its President, “will continue to follow its strategic plan to identify other viable social networks as potential acquisition candidates. We also intend to continue to expand our own community, while leveraging operational costs through technology integration within our expanding social  network.”

USA, New York, NY & Germany, Weinstadt (near Stuttgart)

Posted in Content Media, Internet Media, ~Europe. Leave a Comment »

Report: Quarterly analysis of UK-headquartered private equity control deals in the £10 million to £100 million segment

October 5, 2011 — Fusion DigiNet

  The volume and value of deals completed during the first nine months of 2011 in the lower mid- market investment space has increased year on year for the past three years, according to research from Lyceum Capital and Cass Business School.

For more information, visit the Lyceum Dashboard

Data from The UK Growth Buyout Dashboard – a quarterly analysis of UK-headquartered private equity control deals in the £10 million to £100 million segment – shows that 63 transactions completed between 1 January 2011 and 30 September 2011. This compares to 50 investments for the same period of 2010 and just 25 during the first nine months of 2009.

During Q3 2011, deal volume has built on an encouraging first six months of 2011 with a greater number of deals completed than in Q2. The combined value of those deals fell slightly (from £794 million to £785 million) but both volume and value of deals was still higher than the same quarter of 2010.

Q3 deal value being lower than Q2 despite five more transactions, indicates that there are fewer large deal opportunities however the lower mid-market continues to replenish itself as new businesses enter the space looking to grow with private equity investment.

Transaction sizes

The combined deal value of £785 million exceeds the £698 million recorded during Q3 2010 and the £220 million of Q3 2009.

The highest transaction value recorded in the last three months was £87.8 million, compared to a high of £100 million in Q2 H1 2010.

Meanwhile, transactions valued between £50 million and £100 million fell from seven in Q2 to five in Q3. The majority of the 22 lower mid-market deals completed were in the £26 million – £50 million range, with 86 per cent under £50 million.

The increase in deal activity indicates that there is a growing appetite for investment and that transactions should continue to rise unless there is a significant reversal in the state of the wider economy. There may not currently be the appetite for the larger end deals in the mid-market space but as long as volume maintains its upward trend, the necessary deal flow which keeps the market moving does exist.

Transaction types

Management buyouts (MBOs) and secondary buyouts (SBOs) remained the most prevalent transaction types for private equity investors, but the number of MBOs completed in Q3 2011 actually fell to nine from 12 in Q3 2010 – lower than each of the previous six quarters back to Q1 2010.

There were also two public to private delistings during Q3, compared to one in each of the previous two quarters.

No Initial Public Offerings (IPOs) were recorded, a trend which stretches back to Q1 of 2010 and is unsurprising in a financial climate of weak capital markets where so many anticipated floats have been shelved.

Trade, IPO and secondary exits

A total of nine secondary buy-outs (SBOs) characterised the quarter – the highest number of any quarter during the last two years and an indication that private equity firms are now beginning to sell assets that they have held onto throughout the depths of the economic downturn.

There were six exits to trade, higher than the previous two quarters but lower than the eight which took place in Q3 2010.

Investments by industry

Technology, media, telecommunications (TMT) businesses continue to dominate the lower mid- market with eight out of 22 deals this quarter (38 per cent) and five transactions in business support services.

Retail – undoubtedly one of the sectors hardest hit by a dip in consumer spending – continues an encouraging run of three deals or more completing in every quarter since Q2 2010.

Commentary

Andrew Aylwin, Partner at Lyceum Capital, said: “In the £10m to £100m value range, UK private equity deal volumes continue to recover. With 63 completed transactions so far for the 9 months to 30th September, the market is trending back to historical norms of 100+ control deals a year. The UK lower mid-market segment remains a plentiful source of high quality opportunities across a range of sectors and private equity firms such as Lyceum Capital continue to play a key role in supporting dynamic companies that need capital to continue their successful development and drive the recovery of UK plc.”

Professor Scott Moeller at Cass Business School commented further: “This performance of the UK lower- mid market in the third quarter is in distinct contrast to the overall market when much larger deals of £100 million plus are considered. That market has declined during the past two quarters and some reports show it declining dramatically in Q3 – Bloomberg, for example, this week reported a 43 per cent decline in deals with European purchasers for the overall market. Therefore, the volume of deals in the lower mid market is encouraging in this difficult economic environment, and may prove in the next quarter to continue to be resilient. There is further evidence in our figures of a positive shift in the market with a strong mix of industries, including healthcare, which was absent last quarter and a resurgence in technology deals.”

Other Research Reports:

Posted in B2B Services, Broadcasting, Conference/Exhibitions/Events, Consultancy, Content Media, e-Commerce, Energy & Environmental Services, Games, Internet Media, Market Data & Information, Marketing/Advertising, Mobile Apps, Publishers, Research Reports, ~Europe. Leave a Comment »

DMGT sells GLM to Providence Equity Partners

October 4, 2011 — Fusion DigiNet

DMGT has sold George Little Management (GLM) to Providence Equity Partners. Providence is acquiring GLM through a new holding company led by Charles G. McCurdy, who most recently served as Chief Executive Officer of Canon Communications, a leading producer of trade shows, publications, and digital and data services.

The total consideration was US$173 million(£111 million) of which $154 million (£99 million) was cash with the balance being an interest-bearing note. In addition, DMGT benefit from selling the business with negative $7 million (£4 million) in working capital.

GLM was founded by George F. Little, in 1924, and acquired by dmgt in 2007, and is part of the dmg:events portfolio. The company is forecast to turnover $71 million and make $26 million of pre-tax profits. GLM employs some 100 people, with offices in White Plains, NY, Atlanta, GA and Naples, FL.

GLM currently produces 15 tradeshows. Alltogether, these events have around 11,000 exhibitors in 1.8 million net square feet of exhibit space, and attract approximately 345,000 attendees.

USA, Providence, RI & White Plains, NY & UK, London

Related Providence Equity Partners articles:

Related DMGT articles:


Posted in Conference/Exhibitions/Events, Content Media, Publishers, ~Europe, ~North America. Leave a Comment »

Scripps Networks Interactive and Virgin Media complete UKTV Transaction

October 3, 2011 — Fusion DigiNet

Scripps Networks Interactive has completed the acquisition of Virgin Media’s stake in UKTV, one of the United Kingdom’s leading multi-channel television programming companies, following regulatory approval in the Republic of Ireland and Jersey.

In completing the acquisition, Scripps Networks Interactive has acquired a 50-percent common equity interest in the UKTV partnership and the outstanding preferred stock and debt owed by the partnership to Virgin Media. BBC Worldwide, the commercial arm and wholly owned subsidiary of the British Broadcasting Corp. (BBC), is the other 50-percent stakeholder in UKTV.

Formed in 1997, UKTV attracts about 39 million viewers a month across its portfolio of 10 lifestyle, entertainment and non-fiction (factual) programming channels. UKTV brands include Home, Good Food, Dave, Watch, GOLD, Alibi, Eden, Blighty, Yesterday and Really. UKTV also operates complementary websites for each channel brand.

UKTV channels air award-winning shows from the BBC in addition to original programming. All of the UKTV channels are available on Sky Digital and Virgin Media. Dave, Yesterday and Really also are available on Freeview.

USA, Knoxville, TN & UK, London

Related articles

Posted in Broadcasting, Content Media, ~Europe, ~North America. Leave a Comment »

DMGT trading update September 2011

September 28, 2011 — Fusion DigiNet


DMGT trading update to September 2011

Year end is October 2, 2011

The trading update covers the eleven month period to the end of August 2011

Summary

Revenue up 1% on last year, up 2% on an underlying basis

B2B businesses revenues up 9%

Consumer businesses revenues down 3% on an underlying basis

Forecast for the year at the lower end of the range of market expectations~

BUSINESS TO BUSINESS

Revenues from the group’s B2B operations for the period were 8% higher than for the corresponding period last year, with an underlying increase of 9%.

At a divisional level, Risk Management Solutions’ revenues grew by 4%, an underlying increase of 11%, reflecting continued growth from RMS’s core modelling business.

At dmg information, reported revenues grew by 1%. The underlying revenue increase was 5% with good growth from our companies in the property, education and energy information markets.

At dmg events, reported revenues grew by 20% including the impact of this year’s additional biennial show. The underlying revenue increase was 14%. This includes dmg event’s largest recent event, the summer New York International Gift Fair in August, part of GLM, the sale of which is expected to complete in late September.

B2B revenues include those of Euromoney Institutional Investor, which released its trading update on 23rd September, reporting that total revenues for the full year are expected to show a headline increase of approximately 10%. Recent trading has shown a slowing in the rate of growth of advertising and event sponsorship sales. In contrast, delegate bookings for events and training courses have held up well, and subscriptions revenues have continued to grow at similar rates to the third quarter.

Euromoney has reported that it may achieve the profit target under its capital appreciation plan (CAP 2010) a year earlier than expected. This would give rise to an additional accelerated long-term incentive expense of £6.6 million under IFRS2 which is not reflected in the current estimates for the full year result.

CONSUMER MEDIA

Underlying revenues from A&N Media were 3% lower than for the corresponding period last year and 4% lower on a reported basis. A&N Media has continued to focus on operational efficiency. However, weaker advertising revenues, combined with the high cost of newsprint, will lead to significantly lower profits for the full year compared to last year.

Planning consent has recently been granted for the construction of Harmsworth Printing’s new printing plant in Thurrock. The group plans to acquire the freehold of the site and for the first press to begin production in autumn 2012 and for all six presses, relocated from the existing Surrey Quays site, to be fully operational by the autumn of 2013.

Associated Newspapers’ underlying revenues for the period were 1% lower than for the corresponding period last year, and 2% lower on a reported basis. Underlying circulation revenues were 3% lower. Both the Daily Mail and The Mail on Sunday have continued to improve their market share in recent months.

Total underlying advertising revenues for the period were down 1%, with those from Associated’s newspaper operations down by 2% with print down 4% and digital up 54%. The two largest advertising categories, retail and travel, were weak in the period, both down 5%. The revenues of Associated’s digital-only businesses grew by 5%.

For the eleven weeks to 18 September 2011, total underlying advertising revenues were 1% below last year, with newspaper operations down 2% and digital-only businesses up 2%. This was a significant improvement on the previous quarter to June, which was down 7%, driven mainly by Metro’s particularly strong performance and improving trends from the Daily Mail. Underlying circulation revenues were 4% lower, due to the recent temporary price discounting at The Mail on Sunday, partly offset by the impact of the increase in the cover price of the Daily Mail weekday editions on 18th July 2011.

Northcliffe Media’s total revenues for the period were 10% lower with advertising revenues down 10% (recruitment down 30%, other categories 6% lower) and circulation revenues down 7% compared to last year. For the eleven weeks to 18 September, advertising revenues are down 11%, broadly in line with the previous quarter (down 10%).

Costs continue to be well below prior year levels, driven by reduced staff and distribution expenditure in particular. Headcount was reduced by 17% over the period from 3,130 to 2,600.

FINANCING

On 1 August, Euromoney announced the completion of its acquisition of an 85% interest in Ned Davis Research group for approximately US$108 million (£66 million). The group also expects to complete the sale of GLM before the year end, for a total consideration of £110 million, including £93 million in cash. It has sold its equity investment in CoStar group, Inc, acquired in exchange for Property & Portfolio Research in July 2009, for US$35 million (£22 million). Combined with the generation of strong cash flows, we expect net debt at the year end to be below £750 million.

In May, the group reported a deficit on its defined benefit pension schemes of £198 million at the half year (calculated in accordance with IAS 19). Should the recent declines in bond yields and falls in the equity market be sustained, the group’s year end accounting pension deficit is likely to rise by in excess of 50%.

Martin Morgan, Chief Executive, said:

“DMGT has delivered a solid revenue performance over the year to date, driven by continued strength in our B2B operations offset by difficult market conditions for our consumer businesses. Despite our continued focus on operational efficiency, the weak consumer advertising environment means that full year group operating profit will be lower than last year. We expect some growth in earnings per share compared to last year, given lower finance and tax costs, but at the lower end of market expectations. Going forward our focus will remain on driving organic growth, operational and financial efficiency and pursuing an active portfolio management approach.”

UK, London

Related articles:

Posted in Company Results, Conference/Exhibitions/Events, Content Media, Internet Media, News, Publishers, ~Europe. Leave a Comment »

Reed Elsevier to acquire Accuity

September 28, 2011 — Fusion DigiNet

Reed Elsevier is to acquire the entire issued share capital of Accuity Holdings Inc. from Investcorp, a global investment firm, for a consideration of £343m payable in cash.

Accuity is a US provider of online subscription-based data solutions for the financial services industry which enable customers to maximise the accuracy of their banking and payment transactions, and to minimise the risk of non-compliance with government regulations in these transactions. Accuity is a highly complementary business with both Reed Elsevier’s Bankers’ Almanac and the financial services business of LexisNexis Risk Solutions.

Reed Business Information CEO Mark Kelsey said: “Bankers’ Almanac and Accuity are both strong brands with highly complementary products and strengths and excellent geographic fit. The combination of the two companies will enable us to offer customers much more comprehensive products and services to meet their developing needs.”

Accuity operates in three principal segments:

  • Payment Efficiency: provision of bank routing data files, filters, directories and look-up tools which enable financial institutions and corporates to execute transactions globally, increasing straight-through-processing rates, and reducing errors and costs;
  • Risk Reduction: provision of data and software solutions that enable financial institutions and corporates to screen against sanctioned and high risk entities and people through customer filtering, account screening and transaction monitoring; and
  • National Regulatory Services: provision of workflow, information and consultancy services which help investment institutions remain compliant with regulations.

Accuity is, like Bankers’ Almanac, an online data business with subscription-based revenues, 95%+ customer retention rates and double digit revenue growth. It has offices across the US and in the UK, and provides solutions to the banking financial services, corporate and government communities with over 14,000 clients, including most of the world’s leading financial institutions and all of the top 25 US banks. Accuity has over 300 staff and is based in Skokie, Illinois, United States.

Accuity will be integrated with Bankers’ Almanac and will share the combined data assets with LexisNexis Risk Solutions. The CEO of Accuity is joining Reed Elsevier to run the enlarged business within the data businesses of Reed Business Information.

The acquisition will be accretive to Reed Elsevier’s adjusted earnings from the outset, with post tax returns expected to cover its weighted average cost of capital by the third year. The transaction is expected to close in the fourth quarter.

James M. Peck, CEO of LexisNexis Risk Solutions said: “Accuity is a business with prestigious content, in an attractive space with strong fundamental growth characteristics. The combination will provide our customers with expanded resources to contribute further to managing their AML and Know Your Customer (KYC) requirements.”

The Netherlands, Amsterdam & USA, Skokie, IL

Related articles

Posted in Content Media, Internet Media, Market Data & Information, Publishers, ~Europe, ~North America. Leave a Comment »

Scientific Games Corporation, acquires gaming content and machines business Barcrest Group

September 28, 2011 — Fusion DigiNet

Scientific Games Corporation, through its wholly owned subsidiary, Global Draw Limited, has acquired Barcrest Group Limited, a supplier of gaming content and machines in Europe, from International Game Technology.

Barcrest will be integrated into Scientific Games’ Diversified Gaming Group that includes its server-based gaming businesses, Global Draw and Games Media.  The deal will extend the company’s U.K. presence to new betting shop and pub locations as well as complementary gaming venues, such as bingo halls and other gaming centers, along with providing access to new video lottery customers in Italy and the Czech Republic. Barcrest also provides the Company with an existing base of business in interactive gaming, where game content is currently available through internet, mobile and other digital delivery channels.

Based on preliminary, unaudited results provided to the Scientific Games Corporation, for the twelve months ended June 30, 2011, Barcrest had revenue of approximately £41.9 million, which included approximately £23.2 million of product sales and approximately £18.7 million of recurring revenue.  For the same period, Barcrest’s operating income and depreciation expense were approximately £6.5 million and £4.5 million, respectively. Barcrest had an installed base of over 5,000 terminals as of June 30, 2011.

USA, New York, NY & UK, Ashton-under-Lyne, Greater Manchester

Posted in Games, ~Europe, ~North America. Leave a Comment »

Hearst Magazines UK announces its senior team

September 23, 2011 — Fusion DigiNet

Hearst Magazines UK has announced its senior publishing team and key business leaders.

Hearst Magazines UK, which publishes 24 magazines and 22 digital assets, was launched earlier this month following the completion by Hearst Corporation of the UK portion of its international transaction with Lagardère SCA. The deal brought together National Magazine Company and Hachette Filipacchi UK Ltd, and the combined business rebranded as Hearst Magazines UK.

The senior appointments across the publishing groups are:

  • Anna Jones has been appointed Acting COO of Hearst Magazines UK, reporting to Arnaud de Puyfontaine. Anna, who was Digital Strategy Director at Hachette Filipacchi UK, will work with Arnaud to implement the new agreed business strategy with overall responsibility for the publishing operation for the business.
  • Meribeth Parker will lead the Luxury group comprising ELLE, ELLE Decoration, Esquire, Harper’s Bazaar and Red. Meribeth was previously Group Publishing Director for NatMag’s Young Women’s Group. She will be supported by Publisher Nadia Dawson.
  • Judith Secombe will lead the Lifestyle group comprising Coast, Country Living, Good Housekeeping, House Beautiful, Prima, Prima Baby, Psychologies and You & Your Wedding. Judith was previously Director of Sales at Hachette Filipacchi UK. She will be supported by Publishing Director Steven Seaton.
  • Ella Dolphin joined Hearst Magazines UK this week to lead the Young Women’s Group comprising Cosmopolitan, Company and Zest. Ella was previously at Bauer Consumer Media where she was Publisher of Grazia.
  • Alun Williams continues as Group Publishing Director of Hearst Magazines UK joint venture, NatMag-Rodale.
  • Hearst Magazines UK will appoint a new Group Publishing Director for the Weeklies Group – All About Soap, Best, Inside Soap, Real People and Reveal – in due course. In addition to her Acting COO role, Anna Jones will continue to lead the Weeklies group on an interim basis. Grace Stewart has been appointed Publisher for the weeklies.
  • Rebecca Miskin has been appointed Digital Strategy Director. She will continue to lead the integration. In addition, to her role, Rebecca will assume responsibility for the digital operation at Hearst Magazines UK and create the company’s digital blueprint for 2012.
The following will continue in their present roles.
  • Matt Salmon will continue in his role as Group Commercial Director for Hearst Magazines UK.
  • Sharon Douglas will continue as Consumer Sales & Marketing Director. Sharon will be supported by Brand Marketing Director Reid Holland.
  • Andy Humphries will continue in his role as Finance Director.
  • Nanette Gibb continues in her role as HR Director.
  • Kevin Hand (formerly Chairman of Hachette Filipacchi UK) will remain with Hearst Magazines UK as an adviser to the Chief Executive and the business.
Arnaud de Puyfontaine, Chief Executive, Hearst Magazines UK, and Executive Vice President, Hearst Magazines International said.  “This is a pivotal time for Hearst Magazines UK and I’m delighted to unveil such a talented senior publishing and business team to lead our expanded company. This team, along with our Editors, will redefine the way we do things and help Hearst Magazines UK become a more agile, innovative and successful media company.”
UK, London
Posted in Content Media, Internet Media, Publishers, ~Europe. Leave a Comment »

Time Warner and Vivendi bid for a share of TVN

September 23, 2011 — Fusion DigiNet

The FT is reporting that Time Warner and Vivendi aim to bid for 56 per cent of TVN, the largest Polish private broadcaster by revenue and audience share.

TVN is controlled by ITI Group, holding around 62% ownership. In a report in the Warsaw Voice, ITI president Wojciech Kostrzewa says that only price matters in the deal and admits that a further downturn in the global economic conditions could undermine the deal.

Warsaw voice also reports that ITI’s price expectations are believed to be around PLN 22 to 24 per share, versus recent valuations near PLN 12.

Other companies named as having a potential interest when the process began last year included Discovery Communications, Viacom and News Corp, RT, and private equity companies including Advent, Bain Capital and Providence Equity Partners.

Read more at:

USA, New York, NY & France, Paris & Poland, Warsaw

Posted in Broadcasting, Content Media, ~Europe, ~North America. Leave a Comment »

Rakuten to acquirie Play.com for approximately £25M

September 22, 2011 — Fusion DigiNet

Rakuten is acquiring UK e-commerce site Play.com for approximately £25 million in cash. The deal is expected to close early in October.

The acquisition represents a significant step in Rakuten’s continued European and Global expansion and marks the company’s third acquisition in Europe, joining French e-commerce pioneer PriceMinister, acquired in 2010, and the rapidly expanding German online shopping mall, Tradoria, which joined the Rakuten Group in July of this year. Rakuten now operates e-commerce businesses in ten countries globally, including Japan.

Hiroshi Mikitani, Chairman and CEO of Rakuten, commented on the acquisition, “The UK market is one of Europe’s largest and most mature e-commerce markets. Play.com is not only a pioneer in the market, but also one of the UK’s most successful e-commerce businesses. We aim to leverage our e-commerce strength and experience to further expand and develop Play.com’s business model and channel its loyal user base, merchants, and deep product offerings into Rakuten’s global e-commerce network.”

Japan, Tokyo and UK, Cambridge

Related articles:

Posted in e-Commerce, ~Asia, ~Europe. Leave a Comment »
« Older posts
Newer posts »