UPDATE: TheStreet Will Buy BoardEx for $21M
TheStreet, Inc. (NASDAQ: TST) today announced it signed a definitive agreement to acquire Management Diagnostics Limited, the developer of the leading relationship capital management service BoardEx. TheStreet expects to pay net cash consideration of approximately $21 million at closing. In addition, an earn-out may be payable in 2018 based on 2017 net revenue of BoardEx's existing products and services, subject to adjustment. The acquisition is expected to close during the fourth quarter of 2014, subject to customary closing conditions.
BoardEx is the global leader in relationship capital management services. Clients, including investment banks, consultancies and law firms use BoardEx to leverage their relationships and facilitate business and corporate development initiatives. The company was founded in 1999 and is based in London with additional offices in New York and Chennai, India.
BoardEx will be integrated into The Deal, a business unit of TheStreet that serves corporate dealmakers with the most sophisticated analysis of mergers and acquisitions, private equity and restructuring. BoardEx's proprietary people data will be combined with The Deal's newsroom and transaction data, allowing subscribers to easily network with the very people they read about in The Deal's exclusive editorial content.
"This is a great combination, bringing together the leader in relationship capital management with the leader in deal intelligence reporting, sealing The Deal's stature as the most informative, in-depth source for deal professionals. The move bolsters the fastest growing part of our subscription operation and creates an indispensable business development tool for users," said Elisabeth DeMarse, President, Chairman and CEO of TheStreet. "The acquisition of BoardEx advances the strategic objectives of TheStreet by increasing both institutional content and subscribers. BoardEx's marquee customer base provides a predictable, recurring revenue stream with high renewal rates," concluded DeMarse.
"BoardEx is a well-respected brand and its relationship capital management platform is the gold-standard for data quality. Combining with The Deal elevates BoardEx. Knowing a company might be in play is one thing, but knowing who to call and how to influence them is a game-changer," said James Daly, CEO of BoardEx.
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