Investcorp, a global investment company, announced Friday that it won the auction for Thomson Corp’s Thomson Media properties with a bid of $350 million in cash.
The deal for Thomson Media, publisher of Bond Buyer and American Banker is expected to close by the end of the year.
Industry observers viewed the deal as a triumph for Thomson Corp. which pulled the unit of the market two years ago when the offers weren’t satisfactory. Media reports had estimated the deal would be in the $250 million to $300 million range for Thomson Media, which had $170 million in revenue and estimated operating cash flow of $30 million in 2003.
Baran Rosen, president of M&A company Whitestone Communications, was less ebullient, saying, “I’m sure the purchase price is being based on the full year 2004….So it’s not that much of a premium.”
Investcorp, which was founded in 1982 in Bahrain, said it will keep the current Thomson Media management team, led by CEO Jim Malkin, in place.
This is the first media investment for Investcorp, which in the past has focused on real estate and retail brands, such as Tiffany’s and Josten’s.
This is an excerpt from BtoB Online, October 11, 2004.
