BtoB Media Business - July 2007 - (Page 21)

M&A Summit wheels and deals Back-to-back deals for WBI, Agent Media give company stronger position in insurance markets BY MATTHEW SCHWARTZ ANALYST INSIGHT Richard Mead Jordan, Edmiston Group S ummit Business Media’s back-to-back acquisitions last month of Wicks Business Information (WBI) and Agent Media position the company as a major player in key b-to-b markets, including finance and insurance. Summit was formed last November when William Reilly, former CEO of Primedia, and private equity firm Wind Point Partners teamed up to buy Highline Media and Pfingsten Publishing. Summit announced June 8 that it was acquiring WBI, a media company serving financial services and legal markets in North America. Summit is merging the company into its Highline Media unit, which specializes in the financial and insurance sectors and includes National Underwriter Co. Financial terms of the deal were not disclosed. WBI, a unit of Wicks Group of Cos., publishes Credit Union Times, Inside Counsel, Investment Advisor, Treasury & Risk and their respective Web sites. It also produces custom publications and live events. Its Executive Enterprises seminar unit produces more than 100 courses annually for accountants, lawyers and tax professionals. Roland DeSilva, managing partner at media investment bank DeSilva & Phillips, which represented WBI and Agent Media in the deals, said: “Summit has a strategy to dominate the b-to-b space for insurance, legal and financial services. The WBI deal is a key to that strategy.” WBI generates about $30 million in annual revenue, while Agent Media’s annual revenue is estimated at a little less than $10 million. “The deals are almost too good to be true,” Reilly said. “They fit within Summit’s overall strategy of giving us a serious position in insurance markets, followed by financial markets.” Andrew Goodenough, president of Highline, added that the deal provides synergy between Investment Advisor and Highline’s Wealth Manager and Research, for example. “It’s a better opportunity for customers interested in packaged buys,” he said. Doug Manoni, CEO of WBI, will be leaving the company after a transition period. Asked what his plans are, he said: “You’ll see me resurface. I won’t rule out the possibility of going back to Wicks Group or other options.” Less than a week after it announced the WBI deal, Summit said it was acquiring Agent Media for an undisclosed sum. Agent Media publishes Agent’s Sales Journal and Insurance Marketing. It also manages a 1.6 million name database of licensed insurance agents. Roscoe Smith, president of Agent Media, has remained with the company. Reilly said that by acquiring Agent Media, “We’re getting the lower and middle ends of the [insurance] agent market. We have total coverage of the insurance agent market, and most important is the database of names.” Highline serves the middle and higher ends of the market. Pool of buyers ‘strong as ever’ T M&A A roundup of recent mergers and acquisitions Date Property Description Seller Buyer 5/07 Jane’s A publisher that provides information Jane’s IHS Inc. Information about defense, security and risk Information Group developments Group 5/7 True North Custom Publishing Custom publisher that serves health care, wellness, education and technology markets True North Custom Publishing Sunshine Media 5/7 Technology Provider of technology products Technology TechGuide.com review, price comparison and userGuide.com Target review sites for mobile product markets here is no short-term or even medium-term slowdown expected in the b-to-b media M&A market, as more owners prepare to take advantage of current conditions to sell properties, according to Richard Mead, managing director of media investment bank Jordan, Edmiston Group. TIPS “The buyer pool Do: Sellers is as strong as ever, should ensure aided by plenty of that the busiequity and debt cap- ness is well ital to fund acquisi- prepared for tions of medium and sale and is performing at or larger deals,” he above expectasaid. “The seller tions throughout the process. pool is bringing the Don’t: Buyers strongest group of should not quality businesses sweat the small stuff during due to market that we have seen in the last diligence; they should make 20 years and now sure their outincludes the private side advisers equity fund platform don’t lose sight companies that were of the overall objective in buying acquired in the last the property. five or so years.” Mead said M&A activity is now focused on all types of media and not just online assets. “To be fully integrated and surround its clients, a b-to-b media and information company needs to offer a full range of branded products and services,” he said. “This is not to say that pure information companies such as Thomson need advertising, as demonstrated by their focus and growth in work-flow solutions in the last decade. “But if you are a traditional b-to-b print magazine publisher, with limited extension into other information products, it’s unlikely that you will be long for this new world. This imperative is also driving the current M&A activity.” —Matthew Schwartz M&A ACTION Source: The Jordan, Edmiston Group Inc. Transaction Database, 2007 mediabusinessonline.com | July 2007 | Media Business | 21 http://TechnologyGuide.com http://TechnologyGuide.com http://mediabusinessonline.com

Table of Contents for the Digital Edition of BtoB Media Business - July 2007

Cover
Contents
CMP Revamps Operations: Moves Emphasize Web Over Print
10 Great Media Web Sites
Face-To-Face: Events Play Bigger Revenue Role
Budgeting for 2008: Publishers Look for Right Mix
Sales & Marketing
M&A
Circulation
Pressure on Paper Prices: Mill Shutdowns Could Boost Costs
Production
People
Benchmarks

BtoB Media Business - July 2007