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FAQ: CMP Acquisition of Portelligent
Who is CMP? CMP is part of United Business Media (UBM), a $3 billion London-based global business media company that brings buyers and sellers together across targeted media channels – publications, events and online – with the information they need to do business successfully. UBM has a staff of 5,000 in more than 30 countries. CMP is More than Media™. It's about innovation, influence, and results. CMP brings the power of its trusted IT media brands to technology and business decision makers worldwide through online properties, worldwide gatherings, industry-leading magazines, training, research and expert consulting services. Their targeted media and innovative marketing solutions help customers create long-term, profitable relationships with technology builders, sellers and buyers. CMP offers a diverse range of multimedia advertising and sponsorship opportunities at its face-to-face gatherings, on its leading website properties, and in the pages of its award-winning magazines. CMP's events, websites and magazines cover breaking news, and offer strategic insight and direction about the global business of technology in the following markets: Customer Management (including Call Center); Channel (Distributors and Solution Partners); Telecommunications; Electronics & Embedded Systems; Enterprise & Information Technology (IT) Management; Game Development; Software Development. CMP is headquartered in Long Island, NY with branch offices across the United States. Who is Portelligent? Portelligent, Inc., located in Austin, Texas, USA, offers reports and analyses, based on a rigorous “product-teardown” methodology, to the electronics, wireless, semiconductor, and financial sectors. Portelligent's goal is to enable clients to make faster, better, and more cost-effective decisions about their competitive positioning, technology options, investment strategy, intellectual property position, and marketplace opportunities. Why was CMP interested in buying Portelligent? What is the relationship/value between a media company and a technology company? CMP is currently transforming from a pure play media company to a next generation media and services company, with products like VirtuaLabs and eLearning platforms for engineers. Acquisitions are integral to this transformation and the Portelligent deal follows CMP's acquisition of Semiconductor Insights (SI) earlier this year. SI/CMP brings a great deal of information to the market and CMP can help Portelligent access a wider global audience. Why did Portelligent decide to sell to CMP? Portelligent has derived significant value from its 5-year relationship with CMP including building the company's analyst profile, penetrating new markets, and developing visibility within the C-suite of target accounts. Portelligent's leadership felt that joining forces with CMP would enable both companies to grow exponentially. As well, Portelligent is very excited by the prospect to be able to help accelerate CMP's transition to information services. Where does Portelligent fit in the SI-CMP structure? Portelligent will merge into Semiconductor Insights Technology Marketing team, which also includes SI's TECHinsights business unit. Semiconductor Insights reports into CMP's Electronics group. Who is Semiconductor Insights? Semiconductor Insights (SI) is the leading technical advisor to the world's microelectronics community. SI supports its clients through the technical investigation of patents, integrated circuits and electronic systems. Its TECHinsights division helps technology companies benchmark competing devices, improve time to market and solve technical problems while its IPinsights division helps technology companies and legal professionals evaluate, develop and monetize their intellectual property. Typical clients are major electronics and semiconductor corporations in Japan, Korea, Taiwan, Europe and North America and the law firms that represent them. SI is a division of CMP. SI was founded in 1989 and was acquired by CMP mid 2007. Why is Portelligent being integrated into Semiconductor Insights? Portelligent and SI share many of the same clients and have partnered together on several occasions over the past 7 years. Where Portelligent's teardown analysis stops, SI's detailed technical analysis starts. Together, SI and Portelligent bring a complete solution to market. As well, Portelligent's system level capabilities and market presence are a logical extension of SI's chip level analyses. As a result, integrating the two companies will make perfect sense from a client and deliverable perspective. Is there overlap between Portelligent and Semiconductor Insights? No. Where Portelligent's teardown analysis stops, SI's detailed technical analysis (circuit, structural, or patent) typically starts. In many cases, Portelligent's capabilities will enable SI to perform its own analyses more efficiently and effectively. Why is Portelligent good for SI/CMP? Why is SI/CMP good for Portelligent? CMP has made many successful acquisitions in the past few years and we are looking to grow our portfolio horizontally and vertically. CMP offers Portelligent the chance to be a part of an innovative web/event-centric marketing solutions powerhouse. Employees at Portelligent will have the opportunity to be a part of a widely recognized Company with a presence across the globe and with a strong financial parent in the U.K. This translates into broader career opportunities, strong benefit packages, greater resources, and much more. SI will benefit from Portelligent's system level expertise, while Portelligent will gain access to SI's chip level capabilities. What are the terms of the acquisition? UBM acquired Portelligent for $8 million along with deferred consideration of up to $4 million subject to certain conditions. The transaction is effective on or shortly after November 12, 2007. What does SI/CMP plan to do with Portelligent? Will SI/CMP assume full operational control of Portelligent? Portelligent will continue to operate and execute as a standalone business unit with no disruption. SI/CMP and Portelligent will be looking to create new innovative products and revenue streams. As well, Portelligent will play a key role in helping to transform SI's TECHinsights business. Will there be a reduction in SI/Portelligent's combined workforce as a result of this acquisition? There are no layoffs planned. How does this acquisition impact CMP's strategy? Of all Portelligent's capabilities, what is key to SI/CMP's go forward strategy? All of Portelligent's capabilities are key from engineering to sales and marketing. We will be looking to Portelligent to play a significant role in transforming SI's TECHinsights business. Will Portelligent continue to sell products and services as they do today? Will Semiconductor Insights? Yes. Will CMP/SI sell Portelligent's products/services? Not directly, although SI/CMP web links and promotion will help. What does this mean for Portelligent's clients? Outstanding commitments? It's business as usual, but clients can look forward to new and innovative products. Do CMP and Portelligent have any joint customers? Do SI and Portelligent? CMP, SI, and Portelligent's client base has significant overlap at the company level within the technology industry. However, each company addresses a different audience with a different set of requirements and budgets. CMP sells mainly to communications and public relations teams. Portelligent sells mainly to product marketing and product management teams. SI sells mainly to legal and engineering teams. Together, CMP, SI and Portelligent are able to assist technology companies from product conception through commercialization and reinvention. Will the acquisition create conflicts for Portelligent? For SI? For CMP? No, Portelligent, SI, and CMP are each committed to respecting and maintaining client confidentiality. Since CMP acquired SI earlier this year, conflicts have not been a problem and we expect this to be the same with Portelligent. Will Portelligent's name and brand continue to exist? Yes, Portelligent is a strong brand with a well-established reputation especially at the system level. Does CMP plan to acquire any other technology companies? Yes, CMP is actively looking at synergistic acquisitions, but not SI or Portelligent competitors. Will there be changes to the Portelligent Management Team? How will Portelligent be structured within SI/CMP? Portelligent's existing Management Team will remain in place. Portelligent will merge into Semiconductor Insights Technology Marketing team, which also includes SI's TECHinsights business unit. Semiconductor Insights reports into CMP's Electronics group. Where can I get more information on SI/CMP's acquisition of Portelligent? More information is available on Portelligent's, SI's, and CMP's websites. Please direct specific enquiries to the following media contacts:
Alix Raine (CMP) +1 516 562-7827 What are UBM's, CMP's, SI's, and Portelligent's web addresses?
www.unitedbusinessmedia.com |
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