Advanstar Announces Signing of Definitive Agreement to Sell Certain Business Groups.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Advanstar to Focus on Fashion, License, Motor Vehicle, Healthcare, Science and Pharmaceutical Industry Sectors Advanstar Communications Inc., a leading worldwide provider of B-to-B marketing and business information products and services, announced today that it has entered into a definitive agreement to sell certain assets to Questex Media Group, a new company formed by Audax Group and Kerry Gumas, current Vice President and General Manager of Advanstar's Information Technology & Communications group. Under the terms of the agreement, Questex will acquire the Information Technology & Communications, Travel & Hospitality, Beauty, Home Entertainment, Abilities and Portfolio groups of Advanstar for approximately $185 million in cash. These groups generated approximately $100 million in revenue in calendar 2004. Advanstar will maintain publishing, tradeshow and other operations within its Fashion, License, Motor Vehicle, Healthcare, Science and Pharmaceutical groups which generated approximately $275 million in revenue in 2004. As part of the agreement, Advanstar will transfer to Questex an operating platform carved out of the existing Advanstar structure. In addition, Advanstar will provide certain support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services and office facilities to Questex on a transition basis. Mr. Gumas will head the Questex management team as President and Chief Executive Officer. Joe Loggia loggia Hall, gallery, or porch open to the air on one or more sides. It evolved in the Mediterranean region as an open sitting room with protection from the sun. It is often a roofed, arcaded open gallery on an upper story overlooking a court, though it can also be a , President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Advanstar, commented, "This transaction is an important step in executing our strategy to leverage our position in key markets, develop innovative, quality products and continually redefine Verb 1. redefine - give a new or different definition to; "She redefined his duties" define, delimit, delimitate, delineate, specify - determine the essential quality of 2. integrated marketing beyond the traditional B-to-B model. We believe that by dividing Advanstar's assets into two groups, both companies will be better able to focus on core competencies A core competency is something that a firm can do well and that meets the following three conditions specified by Hamel and Prahalad (1990):
v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. future opportunities. Within our more streamlined organizational structure  This article has no lead section.To comply with Wikipedia's lead section guidelines, one should be written. following the completion of this transaction, Advanstar will continue to enhance operational efficiencies and pursue growth opportunities through internal development and acquisitions." Kerry Gumas, President and CEO of Questex, stated, "We are very excited about partnering with Audax in forming this new business. As a separate entity, the acquired divisions will have the ability to successfully grow from the foundation established under Advanstar. We believe this transaction will provide new opportunities for our employees and customers and we look forward to the future prospects of Questex Media Group." This transaction is expected to close, subject to customary conditions, at the end of April 2005. As part of the transaction, Questex will assume the deferred revenue liabilities associated with the acquired properties, and will receive an adjustment for the negative working capital of the acquired properties. Advanstar intends to use the proceeds for general corporate purposes, which may include acquisitions or repayment of debt. The Company plans to discuss this transaction in detail on Advanstar's first quarter 2005 earnings conference call that is scheduled for May 5, 2005. About Advanstar Based in New York, NY, Advanstar Communications Inc. (www.advanstar.com) is a worldwide business information company serving specialized markets with high quality information resources (1) The data and information assets of an organization, department or unit. See data administration. (2) Another name for the Information Systems (IS) or Information Technology (IT) department. See IT. and integrated marketing solutions. Advanstar has 77 business magazines, 19 directories, 7 electronic publications, 54 tradeshows and 40 conferences, numerous Web sites, and a wide range of print and electronic direct marketing, database and reference products and services. Advanstar serves targeted market sectors including the automotive, beauty, e-learning, call center, digital media, entertainment/marketing, healthcare, fashion & apparel, pharmaceuticals, powersports, science, telecommunications and travel/hospitality industries. Advanstar has roughly 1,500 employees and currently operates from multiple offices in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. , Europe and Asia. About Audax Group Audax Group, founded in 1999, is a leading investor in middle market companies. With offices in Boston and New York, Audax manages in excess of $1 billion in equity and mezzanine mez·za·nine n. 1. A partial story between two main stories of a building. 2. The lowest balcony in a theater or the first few rows of that balcony. debt capital. For more information visit the Audax Group website http://www.audaxgroup.com Business Risks The statements contained in this press release and our other oral and written statements that are not historical in nature are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties. Although management of Advanstar believes that its expectations are based upon reasonable assumptions within the bounds of its knowledge of Advanstar's business, there can be no assurance that they in fact will be realized. Numerous factors may affect Advanstar's actual results and may cause results to differ materially from those expressed in forward-looking statements made by or on behalf of Advanstar including such factors listed from time to time in Advanstar's reports filed with the Securities and Exchange Commission including the factors described in our 2004 Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. under the heading "certain factors which may affect future results." Advanstar does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. |
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