On December 15, 2015, PR Newswire formally announced that it will join forces with Cision, a global media intelligence company, for a cool $841 million.
PR Newswire, a leading provider of communications in all forms of media, made the decision after UBM (the UK-based company who owns PR Newswire) stated back in September that they were in “preliminary discussions” with various interested parties. The deal will net UBM $810 million in cash and $31 million in preferred equity from Cision.
Cision is a Chicago-based company which mainly provides it’s customers with PR software and analytics for public relations and social media. Cision is the parent brand of Gorkana Group, PR Web and iContact. The merging of PR Newswire and the software company Cision will eliminate any direct competition between PR Newswire and PR Web. The joining of these two forces will, indeed, create a massive global communications platform to those in the marketing and PR industry.
“We are serious about building a comprehensive platform to help our clients manage the entire life cycle of communications,” Peter Granat, chief executive officer of Cision, is quoted as saying in The New York Times.
Like PR Web, PR Newswire distributes press releases for marketing companies across North America. According to UBM, their annual revenue last year amounted to $297 million. The company helps 30,000 customers reach their intended audiences and boast customers ranging from fortune 500 companies to main street small businesses.
“We are very excited about the transaction and the opportunities it would provide for our clients, partners and employees,” explained Robert Gray, CEO of PR Newswire, in a news release.
For clients, this could mean that they will soon be able to quantitatively measure the reach of their audience and turn data into business decisions. UBM and Cision’s goal is to become one of the world’s largest B2B events business by fulling backing their promise to keep an “Events First’ strategy. The merge should also help businesses connect with not only their target audience, but with other businesses in the same industry as well, creating open discussions on all fronts and a more transparent business world.
At the moment, no official transaction has been made as the shareholder approval process will take some time. Both parties expect to close the deal at the end of the first quarter of 2016.