Advanstar acquires Inst. of Validation Technology; reports results.

Advanstar Communications (New York) has acquired the privately-held Institute of Validation Technology (IVT; Royal Palm Beach, FL), a supplier of FDA validation and compliance Information. No terms of the deal were given.

IVT produces handbooks, training videotapes, guides, reports, e-seminars and 16 training conferences for validation and compliance professionals in FDA-regulated industries, as well as two quarterly magazines. The Journal of Validation Technology was launched in 1997 and provides information on "practical approaches to conducting effective validations," IVT said. The Journal of GXP Compliance includes strategies for meeting FDA requirements as well as information on FDA enforcement, Interpretations of FDA regulations and overcoming compliance obstacles. An annual subscription to either magazine costs $296.

The acquired assets will become a part of Advanstar's Pharmaceutical & Science Group (Iselin, NJ), a division that currently produces conferences and eight magazines for the pharmaceutical sector, including PharmaGenomics, Spectroscopy, Applied Clinical Trials and Pharmaceutical Executive.

Advanstar ceo Joseph Loggia said his company's current pharmaceutical portfolio "covers the entire discovery cycle, development, manufacturing, distribution and marketing. The addition of IVT will greatly enhance Advanstar's presence in the development and manufacturing markets."

In related news, Advanstar had operating revenue of $323.7 million in 2003, a 5.4% increase over the $307.2 million reported in 2002. The company had a net loss of $49.5 million for 2003 compared to a net loss of $124.3 million in 2002. Operating results improved from a loss of $24.2 million in 2002 to an operating income of $26.8 million last year. EBIDTA for the period increased 1.8% to $82.7 million from $81.3 million.

The company said that all divisions showed signs of recovery but that overall results were adversely affected by the continuing decline in revenues for technology and travel publications and shows. Revenue from trade shows and conferences declined $3.6 million, or 2.2%, to $155.5 million in 2003. Revenue for technology-related trade shows and conferences, making up 19% of total trade show revenue, declined 27% from 2002.

Revenue from publications increased $21.1 million, or 16.1%, to $152.2 million due to the $23.8 million in revenue contributed by the Thomson healthcare properties, acquired in October, and Healthcare Traveler, purchased in October 2002. Revenue from technology and travel publications declined $10.3 million, or 26%, from 2002. Excluding the effects of acquisitions, technology and travel, ad pages increased 10.2% and ad revenue increased 8.2%.