Posted by Elena del Valle on January 8, 2008
Charles Gregson, chief executive officer, PR Newswire
Photo: United Business Media
Video: PR Newswire
British company United Business Media bought Miami-based HispaniMark, LLC on behalf of PR Newswire. UBM bought the Florida company from its founders for an initial cash outlay of $5.5 million and the promise of $3 million more based on performance payable over the next three years. Scroll down to watch video news release of Dave Armon, chief operating officer, PR Newswire.
HispaniMark, expected to have revenues of $2 million in 2007, owns Hispanic PR Wire, LatinClips, and Hispanic Digital Network as well as two other companies not mentioned in the sales announcement. UBM executives expect the acquisition to meet the company’s 8 percent post-tax cost of capital acquisition criterion in its first year of ownership.
“The acquisition of Hispanic PR Wire, LatinClips and Hispanic Digital Network is in line with PR Newswire’s mission to enhance our multicultural services in the U.S. and internationally through a combination of organic development and acquiring leading companies,” said Charles Gregson, chief executive officer, PR Newswire.
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In July 2007, PR Newswire purchased Notilog, a Latin American Spanish- and Portuguese-language electronic media monitoring and analytics firm. PR Newswire executives hope the newly acquired companies will help it penetrate the growing Hispanic market in the United States and Latin America.
Hispanic PR Wire, a news release distributor, generates 70 percent of HispaniMark revenues. Prior to the purchase, Hispanic PR Wire offered distribution in partnership with BusinessWire, Black PR Wire and USAsian Wire. LatinClips offers media monitoring services and Hispanic Digital Network is an Internet advertising network for U.S. Hispanic newspapers, magazines and media portals. As part of the buy-out, four senior staff members from the three companies HispaniMark sold PR Newswire will stay on board, Christine Clavijo-Kish, Bill Gato, Dalia Paratore Salazar and Manny Ruiz.
“For Hispanic media it’s going to be a great ride because we have believed in the power of Hispanic media for seven years,” said Christine Clavijo-Kish, formerly chief executive officer of LatinClips; now senior vice president, Multicultural Markets, PR Newswire. “And we have built resources around delivering news, monitoring news, creating websites for Hispanic media.”
Christine Clavijo-Kish, senior vice president, Multicultural Markets, PR Newswire
Company executives hope the combined forces of PR Newswire and Hispanic PR Wire will reach more than 3,000 unique media outlets and websites that have an interest in Hispanic news. According to PR Newswire, there are 30 wire services and news syndicates, 550 TV shows, 175 cable and satellite TV shows, 1,000 Spanish language radio shows, 875 newspapers, 625 magazines, and an untold number of websites targeting Latinos in the United States.
PR Newswire Association LLC sells electronic distribution, targeting, measurement and broadcast services for tens of thousands of corporate, government, association, labor, non profit customers. United Business Media, a business media company, employs 5,000 staff in 30 countries. The company has two principal areas of business activity: PR Newswire and CMP & Commonwealth, a business to business event, publications, online media and business information services company.
UBM is listed on the London Stock Exchange. In 2006, the company reported continuing businesses generated revenues of almost £740 million with continuing operating profit of £137 million.