What: Cision and PR Newswire announced intent to combine, creating a leading global communications platform. UBM, the British business-events organizer, has agreed to sell the news-release distribution service PR Newswire to Cision for $841 million.
Why it matters: With proposed acquisition of PR Newswire, Cision further expands its PR, social media and analytics offerings. The transaction is expected to close late in the first quarter of 2016. UBM will mostly focus on the event business.
Cision, a global media intelligence company, has announced an agreement to acquire PR Newswire for US$ 841 million, a provider of multimedia communications, from UBM plc. Cision also owns PR Group Gorkana.
The transaction, which requires approval by the shareholders of UBM plc as well as regulatory approvals, is expected to close late in the first quarter of 2016.
PRN is a global leader in public relations (“PR”) and investor relations (“IR”) communications and related services, connecting over 30,000 customers to their target audiences through the largest distribution network of its kind in the world. Customers spanning Fortune 2000 multinationals, small businesses, public relations agencies and government entities rely on PRN to target, reach and engage the most relevant media outlets and audiences with impactful and timely content.
The combination of Cision and PRN resources would result in a seamless and integrated communications tool for intelligence gathering, distribution, monitoring, and analytics platforms. Enhanced scale from the combination of the two companies would enable significant investments in R&D to support continued technology innovation.
“Bringing Cision and PR Newswire together will enable communicators to turn data into actionable insights — the necessary link between communications and business outcomes,” explained Peter Granat, Cision CEO. “We are serious about building a comprehensive platform to help our clients manage the entire lifecycle of communications – from influencer discovery and content distribution to engagement and campaign analysis.”
“We are very excited about the transaction and the opportunities it would provide for our clients, partners and employees,” said Robert Gray, CEO of PR Newswire. “PR Newswire helps PR, IR, Marketing and Compliance professionals maximize the impact of their communications programs through best-in-class solutions and the combination with Cision would further enhance that capability.”
Deutsche Bank Securities Inc., Barclays and RBC Capital Markets are providing debt financing to Cision.While the regulatory and shareholder approvals are sought it will be business as usual for both firms.