Newspaper publisher Daily Mail & General Trust (DMGT) has expanded its online operations with the acquisution of two websites offering dating and classified car sales services.
The acquisitions, which were made by the company’s national newspapers division, Associated Newspapers, form part of its continuing strategy to invest in key areas of the online advertising market.
The first online property to be purchased was Allegran, which operates a portfolio of dating web sites, catering for different segments within the UK market. In the year to 31 January 2006, Allegran reported revenues of £7.4 million, an increase of approximately 160% year on year.
Also purchased was a 62.5% stake in Data Media and Retail (DMR), with the publisher agreeing a three-year earnout with its management to acquire the remaining 37.5%.
DMR is one of the UK’s leading privately-owned car classified portals, including Carsource.co.uk in its portfolio of sites. The company also provides online marketing services relating to data capture, profiling and email marketing. In the most recent financial year, DMR’s revenues grew by over 40% to £4.3 million.
The combined valuation for DMGT’s latest acquisitions is £46.5 million, with initial payments made of £32.5 million. The publisher expects both acquisitions to enhance its earnings before amortisation in the current financial year.
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