BloggingStocks

Vertrue sees virtue in a higher buyout price

Tom Taulli — Tue, 24 Jul 2007 09:40:00 EST

Back in March, Vertrue (NASDAQ: VTRU), which focuses on direct marketing services, announced a going-private transaction at $48.50 per share. The buyers included the company's management, One Equity Partners, Oak Investment Partners and Rho Ventures.

Well, it hasn't been a cake walk. You see, some investors thought the price was too low - and complained about it. Basically, Vertrue is truly a good business. Last year, revenues hit $659 million and EBITDA was $89.8 million.

No doubt, Vertrue tried to defend the price tag - but has now finally given up. Now, the price tag is $50 per share.

Doesn't seem like a lot? But, according to Brencourt Advisors - with a 28.1% stake - it's enough. And that's all that matters. What's more, the investment firm will have the option to buy a $25 million stake in the private company, which is known as an "equity stub."

Interestingly enough, the deal was too rich for Oak Investment Partners, which walked from the transaction.

To see other M&A transactions, click here.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.

Vertrue sees virtue in a higher buyout price originally appeared on BloggingStocks on Tue, 24 Jul 2007 09:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Private equity firms offer $800 million for Vertrue

Tom Taulli — Thu, 22 Mar 2007 07:05:00 EST

Filed under: Private Equity

Vertrue Inc. (NASDAQ:VTRU), which operates the popular dating site Lavalife, is hooking-up with private equity firms for a $800 million buyout. The suitors include One Equity Partners, Oak Investment Partners and Rho Ventures. Some members of the management team are also participating in the purchase.

Vertrue expects to generate annual revenues of $758 million to $748 million. The EBITDA forecast is for $93.1 million to $90.9.

In other words, the valuation on this deal is about 8.6X EBITDA. Compared to other multiples in the Net sector, this certainly looks like a pretty good deal.

There was very little premium on the buyout as the stock price increased only $0.56 to $48.14. Then again, the stock has surged more than 20% since January because of buyout rumors.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.

Private equity firms offer $800 million for Vertrue originally appeared on BloggingStocks on Thu, 22 Mar 2007 07:05:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Newspaper wrap-up 1-24-07: News Corp. in talks for Tribune

Eric Buscemi — Wed, 24 Jan 2007 09:27:00 EST

Filed under: Newspapers, Magazines, Tribune Co. (TRB), Morgan Stanley (MS), News Corp'B' (NWS), Goldman Sachs Group (GS)

MAJOR PAPERS:

The Wall Street Journal (subscription required) had some interesting M&A speculation:

Morgan Stanley (NYSE: MS) and Goldman Sachs Group (NYSE: GS) may team up to acquire Dominion Resources (NYSE: D).
According to the Journal's MarketBeat blog, Williams-Sonoma Inc (NYSE: WSM) denied rumors that it hired Goldman Sachs to "explore strategic alternatives."
Macau has seen its revenue jump 22% in 2006 and could now be in the position to become the world's biggest casino market, topping the Las Vegas Strip.

The Financial Times (subscription required) reported that News Corp (NYSE: NWS) has entered into talks to acquire Tribune Company (NYSE: TRB).

OTHER PAPERS:

A New York Post exclusive wrote that Vertrue Inc (NASDAQ: VTRU) has put itself up for sale and could fetch a bid of about $43 per share.
Investor's Business Daily's "New America" column highlighted real estate company CB Richard Ellis Group Inc (NYSE: CBG), saying the company has been dominating most major markets in the world, before and after its acquisition of rival Trammell Crow for $2.2B last month.

Newspaper wrap-up 1-24-07: News Corp. in talks for Tribune originally appeared on BloggingStocks on Wed, 24 Jan 2007 09:27:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments