CMP Entertainment Media Sold by UBM

Group's assets will make up foundation for new firm, NewBay Media

By Rachelle Crum -- Tradeshow Week, 9/25/2006

London-based United Business Media, one of the most active business-to-business media buyers this year, switched things up this month with its sale of CMP Entertainment Media, a portfolio of non-core, B-to-B and consumer assets, the Technology & Learning division of CMP Technology, and UEMedia Community Sites.

The Wicks Group of Companies, a New York-based private equity firm, through its affiliate, newly formed NewBay Media, bought the assets for $50 million ($47 million cash at closing and $3 million in an earn-out).

New York-based CMP Entertainment Media's assets include seven events, 14 magazines, supplements, newsletters and custom products, and more than 20 online properties. They serve professionals and enthusiasts in music, recording, sound engineering, and audio and video systems installation, as well as technology educators.

The company's tradeshows are Government Video & Technology Expo, Digital Video Expo, and Surround Conference & Expo. Its conferences are DigitalMediaDC Conference, Entertainment Packaging Summit, DVD Entertainment Conference & Showcase and Bass Player Live.

The Technology & Learning division features a magazine and five regional forums. UEMedia offers custom-designed Web sites.

In a press release, UBM stated that it would continue to "develop its U.S.-based CMP Technology business as a 'pure play' media company focused on serving the needs of B-to-B technology buyers and sellers worldwide across print, events and online media."

CMP Entertainment Media President and CEO Tony Keefe will maintain his current role at NewBay. Keefe worked for UBM for eight years — 3 1/2 with the parent company and the last 4 1/2 with CMP Entertainment Media.

"I'm thrilled to be part of something that is now a separate entity, and to be given the opportunity to expand the business," he said.

Jamie Weston, a partner at Wicks, said, "NewBay has been formed to pursue a strategy of acquiring and developing information products in the entertainment and entertainment technology sectors. The acquired assets constitute a significant foundation on which to build a leading media company serving musicians and sound and video professionals and their related fields."

The company's sale was a natural progression, Keefe said, as CMP Media, another UBM subsidiary, and UBM are "very much focused on the B-to-B technology and health care markets" in North America, but not as much on the several B-to-C publications CMP Entertainment Media produces.

He said, "The sale of our business partly came about because they wanted to focus their efforts on those markets."

Jordan, Edmiston Group Inc. represented UBM in the transaction. The firm had repped Shorecliff Communications and Commonwealth Business Media in their sales to UBM in January and July, respectively.

JEGI Managing Director Richard Mead said much of UBM's M&A activity in the past few months is attributed to last year's arrival of UBM Group Chief Executive David Levin.

"(He) decided that there were some assets that were long-term keepers" and some that weren't, he said. "It made sense to sell (CMP Entertainment Media) and take the capital and reinvest it in the company."

UBM also this year acquired the events assets of MediaLive Intl. and the Natl. Venue Show, along with assets from Mediworld, an Indian medical publisher, Cable Digital News and MeXi Solutions.

Mead added, of Levin, "He's really a builder. (UBM is) going to grow rapidly in the next year or so."

As for the future of NewBay Media, Keefe noted, "We plan to make significant investments in the business to further strengthen our market-leading products and brands, and to continue to build value for our customers."

One of the ways he plans to grow NewBay Media is through its tradeshows and conferences.

"Events is one area where we are looking to grow the business," Keefe said.

However, he noted, "We're not locked into one event model," adding that the company would consider launching small shows and conferences and acquiring larger shows, "as long as they provide some kind of strategic fit with the business."

The new company will maintain CMP Entertainment Media's roster of 120 employees. Additionally, Keefe said, "We're making investments to bring in some new key people."

The company currently operates out of offices in New York, San Francisco, Los Angeles and San Mateo, Calif. Over time, Keefe said, the San Francisco and San Mateo offices will combine into a new office about halfway between the two.

Revenue for UBM in the first half of the year was up 25.1 percent to £394.3 million ($741 million) from £315.2 million ($593 million) in the first half of 2005. Last year, CMP Entertainment Media generated $41.3 million in revenue. UBM acquired CMP Media in 1999.

In other M&A news, Boston-based Yankee Group Research has acquired Northborough, Mass.-based Trendsmedia, producer of the wireless show WiMAX World Conference & Expo, next scheduled Oct. 10–12 in Boston. Eliot Weinman, Trendsmedia founder and president, will serve in the newly created position of president of the Yankee Group Events & Publishing Division.

JEGI's Mead said he expects the rest of the year to remain active for acquisitions. As of press time, JEGI has closed 23 M&A industry transactions for 2006. He anticipates that the firm will close another four or five by the end of the year.

Mead added, "Most of next year will be very active. ... It's a great market at the moment."