By Andy Sambidge
Investment firm completes sale of New York-based SoureMedia; terms of transaction are not disclosed
Bahrain-based alternative investment fund Investcorp said on Sunday that it has completed the sale of New York-based business-to-business media company SourceMedia to Observer Capital.
Terms of the transaction were not disclosed in a statement issued by Investcorp which acquired SourceMedia from the Thomson Corporation in 2004.
It said SourceMedia had made "significant investments and changes to the business" during its stewardship, adding that its revenue mix had been diversified to incorporate digital media, marketing services, events and new categories such as research.
Commenting on the transaction, Mohamed Sammakia, managing director at Investcorp and regional head for the UAE, said: "The sale of SourceMedia once again endorses our ability to identify and invest in quality businesses with growth potential.
"Over a ten year period, working closely with management, we were able to transform SourceMedia into a leading business within its sector. We wish the team on-going success as they embark upon the next phase of their development."
The sale of SourceMedia follows a highly active year for Investcorp's corporate investment group, which deployed $609 million across five acquisitions in the fiscal year ending June 30.
"SourceMedia's partnership with Investcorp has been highly successful and we thank them for their support over the last several years," said Doug Manoni, CEO of SourceMedia.
Headquartered in New York with 365 employees, SourceMedia is a business-to-business media company serving senior professionals in the financial, technology, and healthcare sectors.
Earlier this month, Investcorp posted a 25 percent gain in annual net profit, boosted by a resurgence in private equity activity in the region.
Net profit rose to $131.2 million in the year ended June 30, Investcorp said, citing higher activity in acquisitions, sales of investments and the raising of new funds.
Investcorp said it returned around $1.3 billion to investors from sales in eight firms, including stakes in German insulation materials company Armacell and online payments business Skrill Group - which it sold to CVC Capital Partners for 600 million euros in August.