Dow Jones Acquires eFinancialNews

Apr 17, 2007

Dow Jones & Company has entered into agreements to acquire eFinancialNews Holdings Ltd., a private U.K. company, for net cash consideration of £26.1 million, subject to a working capital adjustment. Based in London, eFinancialNews is a diversified media company serving the financial services industry, primarily in the City of London and the U.K. Its flagship operations include the weekly Financial News publication and Web site, a subscription-based service. The company also publishes Private Equity, a weekly publication focused on the European private equity sector, and offers training and events for people in investment banking, asset management, private equity and trading. Approximately 54% of 2007 revenue is estimated to come from non-print sources.

The net cash consideration represents approximately 10.1 times 2007 estimated EBITDA (including 2007 cost synergies). The acquisition is expected to have no impact on Dow Jones EPS in 2007 and be accretive by 3 cents to 5 cents in 2008. The transaction, which is subject to regulatory approvals and other customary closing conditions, is expected to close in the second quarter.