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infoUSA to Buy Guideline for $41.6 Million
Database giant infoUSA has entered an agreement to acquire customised business research and competitive analysis firm, Guideline in a $41.6 million deal. The transaction is likely to contribute to earnings in 2007 and is expected to be completed by the third quarter.
Founded in 1969 and previously known as FIND/SVP, New York headquartered Guideline recently reported $46 million revenue for the year ending 2006, and an organic revenue rise of 13.6% to $12.8m for the first quarter of 2007 (www.mrweb.com/drno/news6797.htm ). The firm also has offices in Boston, Chicago, Minneapolis and Washington DC, and is connected to a global research network in more than 40 countries.
Guideline will operate independently as part of infoUSA and Marc Litvinoff, who has been with Guideline since 2004 (www.mrweb.com/drno/news4671.htm ), will become the company's CEO.
Vin Gupta, Chairman and CEO of infoUSA said that this latest acquisition, along with last year's acquisition of Opinion Research Corporation (www.mrweb.com/drno/news6215.htm ), will significantly increase his firm's presence in the marketing research sector, and added: 'The transaction fits well with our strategic plan to leverage our existing capabilities by offering Guideline's highly complementary research services to our existing market research business.'
InfoUSA will pay $1.35 per share of Guideline common stock in cash, plus an amount equal to the liquidation preference and accrued dividends for outstanding shares of preferred Guideline stock.
As part of the agreement, Guideline directors and shareholders who own c.59% of common stock, have agreed to tender their shares to infoUSA. Guideline has also granted infoUSA the option to buy shares which would result in the firm owning 90%+ of common stock.
Omaha headquartered infoUSA was founded in 1972 to provide business and consumer databases for sales leads and mailing lists, database marketing services, data processing services and sales and marketing solutions.
The two firms are online at www.infousa.com and www.guideline.com .
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