PR Newswire Acquires Hispanic PR Wire and Sister Companies

PR Newswire, a unit of UK-based information company United Business Media acquired Hispanic PR Wire, LatinClips and Hispanic Digital Network (HDN). Hispanic PR Wire provides distribution of Spanish-language news releases, LatinClips is a Hispanic media monitoring service and the Hispanic Digital Network creates Web sites for 80 news and content firms and manages advertising for them. Below are some questions arising out of the deal, with analysis by Portada’s editorial team.

Ø      What was the price of the deal?

According to PR Newswire’s VP of Public Relations Rachel Meranus, United Business Media (UBM) paid $5.5 million. The acquisition is part of a larger acquisition plan for ’08-‘09 with a budget of $600 million-$1 billion dollars. According to an analysis by Morgan Stanley, UBM typically acquires companies by an EBITDA multiple of 9-10 times, which places the EBITDA level of Hispanic PR Wire, LatinClips and Hispanic Digital Network (HDN) at $550,000.

Ø      Who is United Business Media?

United Business Media is a publicly-traded UK-based company that recorded annual sales of $1.56 billion in 2007 (expected by Morgan Stanley) and has an expected 2007 EBITDA (Earnings Before Interest Taxes Depreciation and Amortization) of $340 million.  It has the following 6 business units:

- PRNewswire (17% of revenues, 27.3% of EBITDA in 2006)

- CMP Technology (Technology publishing and Events, 25% of revenues, 14.7% of EBITDA)

- CMP Asia (Exhibitions based in the Far East, 9%, 12,1%)

- CMP Medica (digital, event and print journal brands targeting Healthcare Professionals. 22%, 14%)

- Commonwealth Business Media (Provider of trade, transportation, and travel information, 4%, 4.6%)

Ø      What does PR Newswire (UBM) expect to gain from this acquisition?

The acquisition will give PR Newswire greater access to the U.S. Hispanic market, according to Dave Armon, chief operating officer for PR Newswire. Following the acquisition, PR Newswire intends to expand the network to handle video content, possibly created by its MultiVu division, which specializes in broadband and multimedia news releases.

Together, PR Newswire and Hispanic PR Wire will be able to introduce Hispanic marketers and communicators to the capabilities of the Multimedia News Release. “PR Newswire currently offers broadcast and multimedia services to Hispanic communicators, but combining our forces with Hispanic PR Wire and Hispanic Digital Network will create an unparalleled opportunity for those who want to reach the U.S Hispanic market directly,” says Rachel A. Meranus, VP Public Relations of PR Newswire.

For more information on the acquisition, read article: Jan. 7, 2008 Press Release Distributor Buys Hispanic Digital Network.


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Editorial Staff

Portada Staff

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