Advanstar Communications agrees to sell assets to new company.

Advanstar Communications (New York) has entered into a definitive agreement to sell a range of company assets to Questex Media Group, a new company formed by Audax Group (Boston, MA), a provider of capital for middle market companies, and Kerry Gumas, current VP and GM of Advanstar's Information Technology and Communications group. Under terms of the agreement, Questex will acquire Advanstar's Information Technology & Communications, Travel & Hospitality, Beauty, Home Entertainment, Abilities and Portfolio groups for $185 million in cash. Together, the acquired groups generated approximately $100 million in revenue in 2004.

Advanstar is owned by DLJ Merchant Banking Partners III, a fund managed by Crdit Suisse First Boston Private Equity (New York). The Information Technology & Communications group is comprised of Frontline Solutions (12x), Cadalyst (12x), America's Network (12x), RNT (12x) for the Brazilian market, Telecom (12x), Telecom China (4x), Wireless Asia (4x) and Response (12x) magazines.

The Travel & Hospitality group consists of Hotel & Motel Management (21x), Premier Hotel & Resorts (2x), Premier Spas (2x), Premier Romance (2x) and Travel Agent (52x), while the Beauty group includes American Salon (12x) and American Spa (12x). The Porfolio group includes such titles as LPGas (12x), Home Media Retailing (12x), Landscape Management (12x), Golfdom (12x), Paperboard Packaging (12x), Official Board Markets (52x), Pest Control (12x) and RSI, Roofing/ Siding/Insulation (12x). The deal also includes the Abilities Expo, a show for the healthcare and education professionals as well as directories, guides, conferences and web sites.

Advanstar will retain ownership of its Fashion, License, Motor Vehicle, Healthcare, Science and Pharmaceutical groups. Those assets generated approximately $275 million in revenue in 2004. As part of the deal, Advanstar will transfer to Questex an operating platform carved out of the existing Advanstar structure and will provide certain support services and office facilities on a transition basis.

Also, Questex will assume the deferred revenue liabilities associated with the acquired assets and will receive an adjustment for the negative working capital of the acquired properties. Advanstar said it will use the proceeds from the sale for general corporate purposes, including acquisitions and debt repayment.