Press releases | Archive 2007
RBC acquires Nashi Dengi magazine and Kvadratny Metr weekly
Moscow, October 3, 2007 - OAO RBC Information Systems (MICEX, RTS: RBCI) announces the completion of acquisitions of the Nashi Dengi magazine and the М2 - Kvadratny Metr weekly newspaper.
As a result of the finalized transactions made in cash and worth a total of roughly $4.5m (including investment commitments), RBC became the owner of 89.99% of shares of the Nashi Dengi magazine and a 100% stake in М2 - Kvadratny Metr. The magazine's shares were acquired from a KIT Finance Investment Bank affiliate, while the weekly was bought from the Rodionov Publishing House. The average acquisition multiple for both purchases reached 1.8 on a price-to-sales 2007 basis. RBC's management expects that in 2008 the new titles will bring the company additional revenue of about $5m on account of strong synergy with RBC's print and Internet resources.
Nashi Dengi has been published since March 2004, targeting a broad audience and covering in full the topic of personal finance. It has a vast regional coverage, with local issues published in St. Petersburg, Yekaterinburg, Novosibirsk, Samara and Nizhny Novgorod. The total circulation of the magazine is 55,000 copies.
"Our decision to purchase the magazine was inspired by the fact that it is one of the most promising print media projects on the dynamically growing personal finance market. Furthermore, Nashi Dengi beneficially complements RBC's media products, expanding the range of our titles in print," RBC Media's General Director Artyom Inutin said. "We plan to widely exploit the synergetic opportunities between the magazine and the company's existing business and, in particular the RBC.Credit web site, which is dedicated to the personal finance subject as well."
Kvadratny Metr was launched in early 2000. Today, it has an impressive client base and an established brand on the market of real estate publications. The 36 page full-color weekly has a circulation of 45,000 copies, and is also available online at www.m-2.ru. Kvadratny Metr is now being issued with the assistance of RBC Daily's editorial staff as a supplement to the newspaper and as a separate independent publication.
Commenting on the newspaper's acquisition, Atryom Inutin noted: "The purchase of Kvadratny Metr goes in line with RBC's strategy to expand the number of supplements to the RBC Daily newspaper. With the newly-acquired weekly we managed a fast entry to the market of real estate publications. We expect that the newspaper's established client base will supplement and expand RBC's own pool of advertisers in the real estate sector, which brought over 10% of the company's advertising revenue in 2006. Thanks to a strong synergy between Kvadratny Metr and our interior and design print media products as well as with the popular Internet resource RBC.Real Estate, we plan to move our new title to a top position among print and online publications in the niche."