Newsletter acquisition pace slightly ahead of last year's first quarter.Two different investment banking firms that monitor M&A activity have reported that the first quarter 2005 values of deals completed was ahead of the same quarter one year ago. Whitestone Communications reports that "the pace of acquisitions showed a slight uptick Uptick A transaction occurring at price above its previous transaction. In order for an uptick to occur, a transaction price must be followed by an increased transaction price. This is commonly used in reference to stocks, but it can also be extended to commodities and other forms of securities.Notes: For example, suppose stock ABC previously traded at $10, if its next trade occurred at a price above $10, then ABC would be on an uptick." compared with a year ago. "Newsletter publishers are finally seeing some improvement in results from the economy, and more are therefore likely to consider selling," said Whitestone associate Jenifer Lindenman. "While the first quarter improvement was modest, we expect the pace will pick up as the year goes on." She said the total number of deals in the first quarter 2005 was nine with an estimated value of $57 million compared to six deals with a value of $54 million in the first quarter 2004. Among the larger deals, Whitestone singled these out: * Douglas Publications acquired the Briefings Publishing Group for $15 million or about one times revenue. It was the trade magazine publisher's first newsletter acquisition (NL/NL 1/31/05). * Dan Oswald, handpicked by M. Lee Smith Publishers owner Lee Smith to buy the company, completed the purchase (NL/NL 1/17/05). Started in 1975 with the publication of the still-successful Tennessee Journal, M. Lee Smith Publishers offers more than 130 newsletters, videos, software, books, and directories to attorneys, human resources professionals, and other business executives. * Health Newsletters Direct, one of the leaders in the patient education publishing field, sold to MediMedia, the largest player and most active acquirer in this area. Owner Sally Rynne, who founded HND HND - Hand HND - Has No Degree HND - Higher National Diploma (UK) HND - Hmong National Development, Inc. HND - Honduras (ISO Country code) HND - Tokyo, Japan - Haneda Airport (Airport Code) in 1984, is retiring. HND publishes more than 75 custom-designed publications that target key consumer markets for hospitals, health systems and managed care organizations. Jordan Edmiston For its part, The Jordan, Edmiston Group Inc. (JEGI JEGI - Jordan Edmiston Group, Inc.) reported the same number of deals in both first quarters of 2004 and 2005, eight. But their value increased 144 percent, from $34 last year to $83 million this year. Whitestone, 1350 Avenue of the Americas, #1200, New York, NY 10019, 212-957-7100, fax 212-957-7100 JEGI, 150 E. 52nd St., New York, NY 10022, 212-754-0710, fax 212-754-0337, www.jegi.com |
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