Eniro acquires Gula Tidningen
Eniro AB is acquiring Gula Tidningen AB of Trader Classified Media N.V. for SEK 73 M. With this purchase, Eniro is expanding its offering, strengthening its position in the Swedish market for classified advertising and adding potential for increased use of the Company's internet services.
"Gula Tidningen is well suited to our strategy of connecting buyers and sellers and strengthening our positions in existing markets," says Lars Berg, Chairman and Acting CEO of Eniro AB. "Advancement in the classified advertising market, where we previously were only active through our Internet service Bilweb, provides new opportunities for enhancing our offering and creating value for both users, customers and Eniro." The acquisition means that Eniro will acquire 100 percent of the shares of Gula Tidningen AB, which will be consolidated in the market unit Sweden excluding Voice as of April 1, 2004. The purchase is expected to have a positive effect on earnings before depreciation (EBITDA) in 2004 and to have a neutral effect on earnings per share. The purchase price corresponds to a value of SEK 73 M on a debt-free basis (enterprise value) and is expected to increase Eniro's goodwill by about SEK 71 M, which will be amortized over 20 years. Gula Tidningen has annual sales of about SEK 75 M, with adjusted earnings before depreciation (EBITDA) of slightly more than SEK 10 M. Through sales synergies, Gula Tidningen is expected to be able to achieve a significantly improved operating margin starting in 2005. The acquisition is being made at an Enterprise Value/EBITDA multiple of about 7. "Our greatest challenge will be to develop Gula Tidningen on the Internet," says Cecilia Geijer-Haeggström, Executive Vice President for Internet and Mobile Business at Eniro AB. "Combining Gula Tidningens market position and advertising database with Eniro's Internet traffic and nationwide sales force will create an excellent platform on which to develop sales synergies." Gula Tidningen is Sweden's largest newspaper for classified advertising. Gula Tidningen AB consists of three newspapers/brands with associated web sites: Gula Tidningen, Lila Tidningen and Köp & Sälj. Founded in 1981, Gula Tidningen AB has some 60 full-time employees and has been owned by Trader Classified Media N.V. since 1993. For further information: Lennart Bernard, Chief Financial Officer Tel. 08-634 70 30, mobil 070-825 18 34, firstname.lastname@example.org Boel Sundvall, Investor Relations Tel. 08-634 70 06, mobil 070-560 60 18, email@example.com