United Business Media (UBM) has initiated a major acquisition of Canon Communications. The $287 million US deal brings UBM’s total acquisition amounts to 640 million pounds since David Levin took over the company’s chief executive position. Levin sees that Canon’s online and print assets would complement UBM’s electronic engineering business, especially since they provide some of the biggest trade shows and related media products to the global medical device design industry.
The deal is subject to review and clearance through the US antitrust system. UBM will fund the acquisition through banks and plans to issue bonds when market conditions allow it. UBM is still in a position to make further acquisitions though smaller than the recent one.
The purchase of Canon Communications is from Spectrum Equity Partners. UBM was interested in expanding Canon’s presence beyond the US which accounts for three-quarters of its total revenues, especially into the Asia-Pacific where there is forecasted a fast growth in the medical devices market.
Mr. Levin said: “The medical devices business is overwhelmingly US-centric at the moment, but it is something which is inevitably and inexorably going to globalize.”
Canon reported revenues of 106 million US dollars in the year to June 2010. UBM’s purchase price is 7.8 times Canon’s $37 million earnings before interest, tax, depreciation and amortization. Print titles that were acquired with Canon are the Qmed Qualified Medical Suppliers Directory and National Outlook. Charlie McCurdy of the Canon management team will stay on as a consultant while Canon is integrated into the UBM business. Canon employs 343 workers worldwide and 278 are located in the US.