KKR has agreed to acquire Internet Brands from Hellman & Friedman and JMI Equity. No financial terms were disclosed. Internet Brands’ management will hold a minority stake in the business. Headquartered in El Segundo, Calif., Internet Brands is a provider of online media and software solutions.
EL SEGUNDO, Calif.–(BUSINESS WIRE)–Internet Brands, a leading provider of vertically-focused online media and software services, announced it has signed a definitive agreement under which KKR, a leading global investment firm, will acquire Internet Brands from Hellman & Friedman and JMI Equity. KKR is making its investment in partnership with Internet Brands chief executive officer Bob Brisco and the Internet Brands management team, who will hold a minority stake in the company and continue to run the business.
Internet Brands operates leading branded websites and vertical software solutions in four primary markets: auto, health, legal and home / travel. The Company’s properties attract more than 100 million unique visitors per month and serve more than 100,000 SMBs and advertisers. The Company has approximately 1,600 employees and is headquartered in El Segundo, Calif.
CEO Bob Brisco said, “We’re delighted to be partnering with KKR at this important juncture in our business, when we have dramatically expanded our client solutions portfolio and our growth in key areas is accelerating.”
Herald Chen, Member of KKR and Co-Head of the firm’s technology investing team, added, “Internet Brands is at an exciting inflection point of growth as the company transitions from a portfolio of web assets to a vertically integrated provider of media and client software solutions. Its growth has been driven by its propriety operating platform and a management team with a focused vision. We look forward to partnering with the team and supporting the company in its next phase of growth.”
Tarim Wasim, Managing Director of Hellman & Friedman, added, “We have had a very successful partnership with Bob and the entire Internet Brands team. We are proud of the Company’s performance and transformation, and wish the team continued success under KKR’s ownership.”
Internet Brands operates leading brands in the following categories:
Auto: #1 pure play auto OEM technology and data provider Autodata Solutions; #1 auto enthusiast communities
Health: #1 web presence solutions providers for medical professionals: Officite, iMatrix, TherapySites, and Baystone Media
Legal: #1 web presence solutions providers for legal professionals: Martindale-Hubbell and Nolo
Home/Travel: #1 frequent flier community FlyerTalk.com; #1 apartment review site ApartmentRatings.com.
KKR has a long history of successfully investing in market leading businesses in technology, including recent investments in Go Daddy, Mitchell, Aceco TI, Visma, Fotolia, and Ipreo.
KKR is making the investment through its North America XI private equity fund. The transaction is subject to customary closing conditions.
About Internet Brands
Headquartered in El Segundo, Calif., Internet Brands® is a fully integrated online media and software services organization focused on four high-value vertical categories: Automotive, Health, Legal and Home / Travel. The company’s award-winning consumer websites lead their categories and serve more than 100 million monthly visitors, while a full range of web presence offerings has established deep, long-term relationships with SMB and enterprise clients. Internet Brands’ powerful, propriety operating platform provides the flexibility and scalability to fuel the company’s continued growth. For more information, please visit www.internetbrands.com.
KKR is a leading global investment firm that manages investments across multiple asset classes including private equity, energy, infrastructure, real estate, credit and hedge funds. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation at the asset level. KKR invests its own capital alongside its partners’ capital and brings opportunities to others through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. L.P. (NYSE:KKR), please visit KKR’s website at www.kkr.com.
About Hellman & Friedman
Hellman & Friedman LLC is a leading private equity investment firm with offices in San Francisco, New York and London. Since its founding in 1984, H&F has raised and, through its affiliated funds, managed over $25 billion of committed capital. The firm focuses on investing in superior business franchises and serving as a value-added partner to management in select industries including software, internet, digital & traditional media, healthcare, business, marketing & information services, financial services, insurance, and energy & industrials. For more information on H&F, please visit www.hf.com.
About JMI Equity
JMI Equity is a growth equity firm focused on investing in leading software and technology-enabled services companies. Founded in 1992, JMI has invested in more than 110 businesses in its target markets and has over $2.1 billion of committed capital under management. JMI provides capital for growth, recapitalizations, acquisitions and buyouts. Representative investments include DoubleClick, BigMachines, Eloqua, PointClickCare, PowerPlan, ServiceNow and Unica. For more information on JMI Equity, visit www.jmi.com.