United Business Media set to acquire MediMedia assets for 282.5 million [pounds sterling].

United Business Media (UBM; London) has submitted a binding offer to acquire MediMedia's (Teterboro, NJ) drug information businesses in continental Europe and Asia, and all the trade press, patient education and pharma marketing solutions businesses in Germany, Benelux and Asia-Pacific. UBM said the assets have leading market positions in 21 countries.

UBM will acquire the assets for 282.5 million [pounds sterling] in cash and the deal is subject to regulatory approval. The acquired properties had 2003 revenues of EUR 105.8 million and EBITDA of EUR 24.4 million. UBM said the deal would be earnings neutral in 2004, is predicted to increase earnings by more than 5% in 2005 and is expected to achieve UBM's cost of capital within two years.

UBM said the businesses to be acquired comprise the world's largest international network of operations, including presence in Russia, China, Thailand, Korea, Hong Kong, Taiwan, Vietnam, Philippines, Malaysia, Singapore, New Zealand, Australia, Indonesia, Germany, India, Hungary, Spain, Portugal, France, Belgium, the Netherlands, and Poland. MediMedia's major drug information brands include VIDAL (France and Russia), Vademecum (Spain), Simposium (Portugal), Medex/Medasso (Benelux), Gelbe Liste (Germany), Pharmindex (Poland and Hungary) and MIMS (Asia, Australia and New Zealand).

In addition to the drug information business, in Germnay, Benelux and Asia Pacific the assets also include medical press titles for healthcare professionals, pharma marketing solutions and patient education. Magazine and journal titles include Intra Muros, Journal du Medicin and Patient Care, among others, in Europe, and Asia Pacific Dental News, Cancer Update and Nursing Trends, among others, for the Chinese and Asia Pacific markets.

The pharma solutions assets include marketing and communications services for healthcare professionals, mainly through publications and services that are financed by pharmaceutical company sponsorships. The patient education assets include publications and services financed by pharmaceutical company sponsorship and advertising.

UBM ceo Clive Hollick said the deal "is an excellent fit with our strategy of building our core franchises and extending our geographical coverage in key markets on attractive financial terms. UBM's resulting healthcare business would account for nearly a quarter of our revenues, equivalent to our major position in technology markets." Also, UBM said that current MediMedia International ceo Stephen Warshaw will be appointed ceo of the acquired businesses.

UBM produces a variety of related healthcare publications and services through units CMP Media Healthcare, CMP Information (UK), CMP Asia, N0P World Healthcare and PR Newswire (Health/Biotech Newsline). In November 2003, UBM acquired the Oncology Group and Cliggott Publishing, Inc. MediMedia was acquired by Cinven, Carlyle, Apax and management from Vivendi Universal Publishing in June 2002.