Yellow Media Inc., the publicly traded Canadian Internet company, is selling its online classified business – LesPAC Inc. – for $72.5 million. The buyer is Mediagrif Interactive Technologies Inc. The cash deal is effective immediately, the company said in a written release.
Yellow Media Inc. (TSX:YLO) announces that it has sold the assets of LesPAC Inc. to Mediagrif Interactive Technologies Inc. for a purchase price of $72.5 million. The transaction is effective immediately.
Given its consumer-to-consumer business model, the sale of LesPAC.com will further allow Yellow Media to concentrate its efforts on fully serving Canadian businesses via the Yellow Pages 360° Solution (www.yellowpages.ca/360)(1) and being Canada’s leading performance media and marketing solutions Company. “This divestiture enables us to focus on our core business through continued investments towards our digital transformation.” said Marc P. Tellier, President and Chief Executive Officer of Yellow Media Inc.
The purchase price consideration was paid in cash. Proceeds from this divestiture will be used to reduce indebtedness and reinvest in the business.
Mediative, Yellow Media’s national digital marketing division, will continue to market and sell display advertisements on LesPAC.com on an exclusive basis. The Promo du Jour group buying service site and business will remain a property of Yellow Media Inc. and will continue to be advertised and offered through LesPAC.com.
LesPAC.com was created in 1996 and operates a web site of classified ads in the generalist category. For the year ended December 31, 2010, LesPAC Inc. reported revenues of $12.7M.
About Yellow Media Inc.
Yellow Media Inc. (TSX:YLO) is Canada’s #1 Internet company through its network of companies that include Yellow Pages Group and Canpages. Yellow Media Inc. owns and operates some of Canada’s leading properties and publications including Yellow Pages™ directories, YellowPages.ca™, Canada411.ca™, and RedFlagDeals.com. Its online destinations reach approximately 9 million unique visitors monthly and its mobile applications for finding local businesses and deals have been downloaded over 3.0 million times. Yellow Media Inc. is also a leader in national digital advertising through Mediative, a digital advertising and marketing solutions provider to national agencies and advertisers.