NEW YORK, April 19 /PRNewswire/ -- Note: Today, Lagardere issued the following press release (see below) in Paris announcing that Hachette Filipacchi Media U.S (www.hfmus.com), a Lagardere subsidiary and owners of the Car and Driver, Road & Track and Cycle World brands, reached an agreement to acquire Jumpstart Automotive Media (www.JumpstartAutomotiveMedia.com), the San Francisco-based vertical advertising network focused exclusively on the automotive industry. Jumpstart will operate as a wholly-owned subsidiary of Hachette retaining the Jumpstart brand and all of its employees.
Jumpstart will immediately assume responsibility for the online advertising sales of CarandDriver.com, RoadandTrack.com and CycleWorld.com, significantly expanding its advertising inventory. These sites will be aggregated with Jumpstart's network to bring the total number of unique visitors to 5 million per month (Source: ComScore March 2007), making Hachette and Jumpstart among the leading players in the online automotive industry.
Statement from Jack Kliger, President and CEO, Hachette Filipacchi Media U.S.:
"The acquisition of Jumpstart gives us scale and expertise in the online automotive marketplace, the largest and most important ad category on the Web. By combining the strong digital platform of Jumpstart with our well-established brands Car and Driver, Road & Track and Cycle World, Jumpstart and Hachette will be well-positioned to capitalize on future growth opportunities in the automotive category and to create more powerful offerings for our advertising partners in the future.
"Mitch Lowe and his team of over 75 experienced online automotive experts have been smart and built a business that has carved out a unique position in online sales. We are delighted that Mitch and his group will continue to operate this business. We plan to contribute assets and investments to support Jumpstart's continued growth. Jumpstart is highly respected in the automotive industry and has an innovative and successful business model. Jumpstart already represents a group of premier in-market automotive brands, and we think that our brands will complement this list and will strengthen the network for advertisers. We look forward to working with Jumpstart's network of publishers to develop synergies.
"With the acquisition of Jumpstart, Hachette can now serve the full purchase cycle for the consumer. In my opinion, the key to future success in the automotive marketplace is to be able to effectively serve the consumer's buying process from the beginning to the end. The prospective buyer usually takes twelve weeks to make a decision, and Car and Driver and Road & Track have been important resources to a consumer who is researching which make and model to buy. The Web increasingly plays an important role in the final stages of purchasing, and Jumpstart's strength is its connection to the in-market buyer."
Statement from Mitch Lowe, Founder and CEO, Jumpstart Automotive Media:
"Since 2000, Jumpstart has been dedicated to delivering exceptional results online for advertisers and publishers in the U.S. automotive market, and this market is the biggest in the world and the largest media category in this country. One out of eight media dollars comes from automotive advertisers which represents $34.5 billion. With digital advertising, there is a growing demand for inventory. We believe that the recognized brands, strong editorial content, and deep advertising relationships of Hachette will enhance our selling capabilities and open exciting new business opportunities as we embark on the next stage of our development."
LAGARDERE SCA PRESS RELEASE
Lagardere subsidiary enters into definitive agreement to acquire Jumpstart Automotive Media
Lagardere SCA has announced today, April 19, 2007, that its subsidiary, Hachette Filipacchi Media U.S., Inc. (HFMUS), a member of LAGARDERE ACTIVE, will acquire 100% of Jumpstart Automotive Media ("Jumpstart").
Jumpstart is a leading online advertising network serving the US automotive sector and providing a full line of advertising products and services to auto makers and dealers. Jumpstart's main activities are:
-- Selling advertising space on five of the top automotive sites in
the USA (NADAguides.com, Vehix, JD Power & Associates Autos, How
Stuff Works/Consumer Guide Autos, Shopping.com Auto, an eBay
company);
-- Generating some of its revenues from behavioral targeting, which
serves ads based on internet user behaviors;
-- Offering consultancy services aimed at optimizing the efficiency of
search engine marketing;
-- Offering lead generation services, selling lists of potential
customers obtained from partner sites to auto wholesalers and
dealerships.
Jumpstart's advertiser client base includes all auto manufacturers and over one thousand auto dealerships and dealer groups.
Jumpstart reported 2006 revenues(1) of $17.1 million (95.5% higher than in 2005). Earnings before interest and taxes (EBIT) reached breakeven in 2006. The company was cash-positive at end 2006.
In 2007, Jumpstart is expected to see strong growth in both revenues and EBIT.
An initial cash payment of $84 million is payable under the terms of the agreement. Additional consideration of up to a maximum amount of $26 million will be paid in 2008 and 2010 contingent on the attainment of certain specified earnings targets.
The transaction is expected to give HFMUS and LAGARDERE ACTIVE globally, the opportunity to develop the following synergies:
-- Combining the three HFMUS web sites with the Jumpstart portfolio
will raise total unique visitors represented to 5 million
(ComScore figure), and adding HFMUS's three popular high-end
brands (CarandDriver.com, RoadandTrack.com and Cycleworld.com)
will enhance the attractiveness of the product offering to
advertisers.
-- Jumpstart's expertise in search and display advertising for
dealerships and dealer groups (a total category estimated at $16
billion) will boost the HFMUS sites.
-- The experience of Jumpstart's specialist digital teams (over 75
professionals) will help HFMUS accelerate the transition to
digital in the automotive sector in the United States, as well as
LAGARDERE ACTIVE in Europe and Asia.
-- The deal significantly reinforces HFMUS's cross-media strategy of
combining print media and digital.
-- The expertise built by HFMUS in automotive content (including
video) can be rolled out across Jumpstart's partner sites, and
offered to Jumpstart's dealership client base.
Closing of the transaction is expected to occur prior to the end of May 2007 and is subject to customary closing conditions, including anti- trust approval.
Paris, April 19, 2007
(1) 2006 revenues are unaudited and proforma as restated for IFRS as applied by the group Lagardere
The Lagardere Group is a market leader in the media sector (books, distribution of cultural products, press, audiovisual, and sports content). The Group also has interests in the high technology sector via a 14.98% stake in EADS.
Lagardere shares are listed in Paris on Eurolist by Euronext - Compartment A
Lagardere Group Press Contacts:
Thierry FUNCK-BRENTANO tel: +33 (0)1.40.69.16.34
e-mail: tfb@lagardere.fr
Arnaud MOLINIE tel: +33 (0)1.40.69.16.72
e-mail: amolinie@lagardere.fr
Investor Relations:
Laurent CAROZZI tel: +33 (0)1.40.69.18.02
e-mail: lcarozzi@lagardere.fr
About Jumpstart Automotive Media
Jumpstart Automotive Media (www.JumpstartAutomotiveMedia.com) partners with leading web publishers to create the Internet's largest and highest quality community of car shoppers. Jumpstart's targeted reach and innovative marketing programs help automotive manufacturers and dealers improve their advertising results and help web publishers achieve a maximum return on their audience. Jumpstart counts every automotive manufacturer and more than one thousand automotive dealers as customers. Key Jumpstart Network partners include NADAguides, Vehix, Consumer Guide Automotive, JD Power Autos and Shopping.com. Jumpstart has partnered with leading web sites and ad networks for a Behavioral Auto Channel which uses behavioral targeting to track and serve ads to in-market car buyers across one of the web's largest aggregated distribution bases.
Jumpstart has aggregated the largest in-market audience online through four core products:
Contextual Display Network
-- 5 million unique car shoppers/month - the Jumpstart Auto Channel
Behavioral Targeting Display Network
-- 6 million unique car shoppers/month - auto buying intent behavior
-- 140 million unique internet users - aggregated distribution
network
New Car Leads
-- 75,000+ qualified consumer leads delivered to U.S. auto dealers
per month
Traffic Builder Search Marketing
-- Product portfolio spans all stages of consumer car research
-- Customer base spans all facets of automotive marketing
Including OEMs, regional dealer associations, local auto dealers,
allied industries
Ever since its launch in 2000, Jumpstart has been profitable and expects to double its revenue basis in 2007. The company is privately held and is headquartered in San Francisco, CA with additional offices in Los Angeles and Detroit.
About Hachette Filipacchi Media U.S.
Hachette Filipacchi Media U.S. (www.hfmus.com) enthusiast brands reach over 50 million consumers through magazines and millions more through online and mobile content. The company's prestigious brands include American Photo, Boating, Car and Driver, Cycle World, ELLE, ELLE Decor, ELLEgirl, Flying, Home, Metropolitan Home, Popular Photography & Imaging, Premiere, Road & Track, Shock, Sound & Vision, Woman's Day and Woman's Day Special Interest Publications. The company plans to launch is first digital brand PointClickHome in second quarter 2007. Each brand has a web site; and a growing number of Hachette brands, including Car and Driver, ELLE, ELLEgirl, and Woman's Day, have brand extensions in television, radio, mobile services and consumer branded events. Hachette Filipacchi Media U.S., Inc. also includes book and custom publishing, integrated marketing, database and market research, as well as licensing, and is part of the Lagardere Active division of Lagardere SCA (www.lagardere.com) which is headquartered in France.
Car and Driver (www.CarandDriver.com) With a circulation of 1,300,000 in the U.S., Car and Driver is the world's largest, most comprehensive automotive enthusiast publication with six international editions which combine unsurpassed editorial and technical expertise with the ability to place readers in a virtual driver's seat. Car and Driver is a vibrant brand which currently offers interaction with its audience through a website, radio, mobile, podcasting and events. Over 10.5 million people read the magazine each month and more than 1 million go online for CD content. CarandDriver.com has experienced 133% growth over the past year. Car and Driver is available on Sirius and XM satellite radio and on Podcastgo.
Road & Track (www.RoadandTrack.com) Road & Track is America's original car enthusiast publication, with a 60-year track record of providing its audience with the finest road tests of new cars, comparisons for car shopping, over-the-horizon looks at future cars and trends, in-depth technical updates on everything from future fuels to tire technology, and racing features that transport the reader into the pits and paddocks of racing teams around the world. Road & Track's reputation for integrity and excellence extends from the magazine and into a robust website with interactive features, as well as a live radio program, events and licensed products. RoadandTrack.com has seen 93% growth over the past year.
Cycle World (www.CycleWorld.com) With its premiere issue in 1962, Cycle World marked the beginning of modern motor-journalism. Enthusiasts finally had a publication written to serve their interests, rather than those of motorcycle retailers. Forty years later the result is obvious: Cycle World is the leading motorcycle magazine in the world. The publication is respected by enthusiasts for insightful and honest reporting on all aspects of motorcycling.
(1) 2006 revenues are unaudited and proforma as restated for IFRS as applied by the group Lagardere