Economist Group buys Times' unit
The Economist Group announced yesterday that it has agreed to acquire Congressional Quarterly (CQ) from the Times Publishing Company. The new CQ-Roll Call Group will comprise Roll Call, the leading newspaper for Capitol Hill, GalleryWatch, a legislation-tracking service, that The Economist Group acquired in 2006, and Capitol Advantage, a grassroots mobilisation service acquired in 2008 and the CQ.
The Economist Group refused to disclose the value of the deal.
It said in a statement: "The Economist Group is not a public company and so will not be releasing further financial details on the new acquisition at this time. However, our next interim annual report, to be published in six months' time, will include some more information."
In June, The Economist Group reported record earnings for the year ended March 31, with operating profit up 26 per cent to £56 million (Dh336.5m, $91.7m) and revenues up 17 per cent to £313m.
These results were driven by continued circulation growth to record levels, strong advertising and the success of the group's other businesses including the wholly-owned Roll Call Group, based in Washington DC, said the company.
Its annual financial report had pointed out that the group's acquisition, Capitol Advantage, purchased in July 2008, had performed beyond expectations and would create long-term value and growth.
"Adding CQ to our portfolio means that we will be able to offer comprehensive information and analysis to customers," said Andrew Rashbass, Chief Executive Officer of The Economist Group. "CQ is famous for its unbiased, authoritative journalism. Roll Call's journalistic excellence is equally well known, as is the sophistication of the other information services in the Roll Call Group. I am delighted that CQ is joining The Economist Group. The new CQ-Roll Call Group will be the leader in delivering insight and analysis about the workings of Congress."
The two companies each have a long, rich and distinctive history covering Congress. Since 1945, CQ has been the "publication of record" providing a factual, unbiased account of congressional activity. In recent years, CQ has been at the forefront of developing internet services that provide real-time intelligence on the workings of Congress.
Roll Call, founded in 1955, is at the centre of the Capitol Hill community, covering the people, politics and personalities that drive the legislative process. This focus on community has led to expansion into trade-association-based grassroots mobilisation with the acquisition of Capitol Advantage in 2008.
The acquisition will be funded with cash and the issue of long-term private placement notes. Structured as a committed acquisition facility, the notes will be purchased by Pricoa Capital Group under a bilateral agreement. The Economist Group welcomes Pricoa Capital Group as a new relationship capital provider via this one-step transaction.
Both companies have approved the transaction, which is subject to customary closing conditions and is expected to close in the third quarter of 2009.
CQ has more than 160 reporters, editors and researchers covering Capitol Hill and Washington, and working in print and online on a weekly, daily and real-time basis. Its readership includes members of Congress, as well as executive branch officials, leaders in business and associations, top academic institutions and important media outlets. CQ's product line includes: CQ Weekly, CQ Today, CQ.com, CQ Politics, CQ Homeland Security, CQ Budget Tracker, CQ HealthBeat, and CQ MoneyLine. The publications and services under The Economist brand are The Economist, Economist.com, the Economist Intelligence Unit, Economist Conferences, and The World In and Intelligent Life.
The group's other brands include: CFO, a publication for senior finance executives; and EuroFinance, a cash and treasury management event business.
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