UBM to sell data services business
London—B-to-b media company UBM has agreed to sell most of its data services business to private equity firm Electra Partners for about $251 million.
The sale represents the bulk of UBM's data services segment and includes its health; technology and IP; trade and transport; and paper business units. Last year, those businesses—together dubbed “Delta”—generated $281.0 million in revenue, down from $298.0 million in 2011. Adjusted operating profits declined slightly in that time period, to $42.9 million last year from $43.4 million in 2011.
“This transaction is a significant strategic step forward for UBM: By divesting Delta, we simplify UBM's business, improve the quality of our earnings, enhance our underlying growth rates and remove the challenges inherent in the continued transition to digital data delivery,” said David Levin, CEO of UBM, in a statement. “We can now look forward to focusing on further developing UBM as a fast-growing and increasingly profitable events-led, marketing services and communications business.”