Reader's Digest, a portfolio company of Ripplewood Holdings, has agreed to sell QSP Inc. to Time Inc. for $110 million in cash. QSP provides fundraising services for schools and youth groups.
Time Inc. and The Reader's Digest Association, Inc., today announced that they have entered into a definitive agreement for Time Inc. to acquire QSP, Inc., RDA's school and youth groups fundraising company. The purchase price will be $110 million cash. The companies expect to close the transaction shortly after receipt of regulatory approvals and the satisfaction of customary closing conditions. The announcement was made jointly by Ann S. Moore, Chairman and Chief Executive Officer of Time Inc., and Mary Berner, President and Chief Executive Officer of RDA.
“We are delighted to be acquiring QSP, by far and away the leader in providing fundraising services to schools and youth organizations in North America that need fundraising assistance,”
Berner said: “We are very pleased to announce this agreement, and we look forward to working with Time Inc. on a seamless transition for QSP's employees, customers and partners. We view this transaction as a highly positive outcome for all parties concerned. For RDA, the move is consistent with our strategy to focus on our core competencies, which include growing our portfolio of publishing businesses and building multi-platform communities of customers based on our branded content.”
Time Inc. sees fundraising as a growing area for subscriptions across the magazine publishing industry and envisions benefits to operating QSP's large direct-selling force in
Kerry Hatch, President of RDA's School & Educational Services division, and QSP, Inc., said: “We are very excited to become a part of Time Inc. Working within Time Inc.'s strong consumer marketing framework, we will have the opportunity to apply our fundraising expertise on a larger scale as we bolster QSP's magazine and multi-product sales across our broad spectrum of customers.”
For QSP, moving to Time Inc. is a reunion. RDA and Time Inc. jointly ran QSP after it was founded in 1963. RDA bought Time Inc.'s share in 1971. QSP went on to become the largest fundraising company in
The Reader's Digest Association, Inc., is a global multi-brand media and marketing company that educates, entertains and connects audiences around the world. With offices in 45 countries, it markets books, magazines, music and video products that reach a customer base of 100 million households in 79 countries. It publishes 92 magazines, including 50 editions of Reader's Digest, the world's largest-circulation magazine, operates 65 branded websites generating 18 million unique visitors per month, and sells approximately 68 million books, music and video products across the world each year. Its global headquarters are in
About Time Inc.
Time Inc., a Time Warner company, is one of the largest content companies in the world. With 24 magazines and 26 websites in the