LoopNet pays $15m for Cityfeet.com.LoopNet, Inc., which operates the largest commercial real estate marketplace online, has acquired privately held Cityfeet.com. Cityfeet operates the largest online distribution network for commercial property listings and the second largest online marketplace for commercial property listings at Cityfeet.com, with over 100,000 active listings. The Cityfeet Network distributes commercial property listings to over 100 partners, including the online websites of the New York Times, the New York Times, The Morning daily newspaper, long the U.S. newspaper of record. From its establishment in 1851 it has aimed to avoid sensationalism and to appeal to cultured, intellectual readers. Boston Globe, the Boston Globe, The Daily newspaper published in Boston, one of the more influential newspapers in the U.S. Founded in 1872, it was purchased in 1877 by Charles H. Taylor. Los Angeles Times Los Angeles Times Morning daily newspaper. Established in 1881, it was purchased and incorporated in 1884 by Harrison Gray Otis (1837–1917) under The Times-Mirror Co. (the hyphen was later dropped from the name). , the Chicago Tribune Chicago Tribune Daily newspaper published in Chicago. The Tribune is one of the leading U.S. newspapers and long has been the dominant voice of the Midwest. Founded in 1847, it was bought in 1855 by six partners, including Joseph Medill (1823–99), who made the paper , the Dallas Morning News and the Atlanta Journal-Constitution. "The combination of LoopNet and Cityfeet.com will bring great benefits to both LoopNet and Cityfeet customers," said Richard Boyle Richard Boyle may be:
"By bringing together the largest online marketplace and the largest distribution network, we will be providing unmatched exposure opportunities for both LoopNet and Cityfeet commercial property listings." "The acquisition by LoopNet validates Cityfeet's long term strategy of building the largest distribution network in the commercial real estate sector, and the unique value that Cityfeet delivers in marketing commercial properties," said Fred Saint, CEO of Cityfeet. "We are excited to be part of the LoopNet family, and look forward to continuing to offer great service to our customers." LoopNet has purchased Cityfeet for an aggregate cash consideration of $15 million, with an additional potential future consideration of $3 million cash if certain performance targets are met. LoopNet expects that Cityfeet will add approximately $1 million in revenues to LoopNet for the remainder of 2007. While Cityfeet has been consistently profitable as a standalone business, LoopNet expects the transaction to have no significant impact on 2007 EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become , and to be dilutive to 2007 EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. in the range of approximately ($.02) per diluted share due to various acquisition related expenses. Impact on the Company's financials beyond 2007 will be incorporated in the guidance given for 2008. The LoopNet marketplace, available at www.LoopNet.com, is the most heavily trafficked commercial real estate website with 950,000 average monthly unique visitors during the second quarter of 2007, according to comScore. The LoopNet marketplace covers all commercial property categories, including office, industrial, retail, multifamily, hotel, land, specialty properties, and businesses for sale. Pacific Crest Securities served as an advisor to LoopNet on this transaction. |
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