NEW ORLEANS — October 11, 2005 – Legacy Capital announced today that Equine.com, the world’s largest online marketplace for equine enthusiasts, was sold to PRIMEDIA Inc. (PRM). This acquisition adds a fast-growing and profitable online marketplace to complement PRIMEDIA’s existing portfolio of equine-based properties, and enables PRIMEDIA to extend Equine.com’s proprietary technology and unique marketing tools to its other industry verticals and publications. PRIMEDIA also gains the expertise of Equine.com’s Founder and President Aaron Bromagem, an online industry veteran, who will leverage his rich Internet background and expertise in building online marketplaces. Financial terms of the acquisition were not disclosed. Equine.com was represented by Legacy Capital in this transaction.
The acquisition continues the Company’s pursuit to offer best-in-class mix of print and online media by providing enthusiasts with innovative applications to access content and carry out transactions across numerous verticals. With over two million visitors every month and 55,000 active classified ads, Equine.com is the leader in connecting buyers, sellers and breeders of horses and related goods. Through its proprietary technology, Equine.com facilitated an estimated $80 million in horse-related transactions over the past 12 months. The complementary combination of Equine.com with PRIMEDIA’s award-winning equine Web site, EquiSearch.com, and magazines–EQUUS, Horse & Rider, Dressage Today, Practical Horseman, Arabian Horse World, and Growing up with Horses–creates new opportunities for innovation among both equine enthusiasts and the advertising community.
“This acquisition has two key benefits: first, it enhances our position in the $25 billion equine market by adding a high-growth, transaction-based online business to our leading print franchises; second, it brings a technology platform and a strong management team to PRIMEDIA that can help accelerate the development of online marketplaces in other categories in which PRIMEDIA has strong brands, leading publications and well trafficked Web sites,” said Kelly P. Conlin, PRIMEDIA’s president and chief executive officer. “Applying the Equine.com model to our other markets can create electronic marketplaces in categories where trading endemic products among enthusiasts is growing significantly.”
“Equine.com invested a tremendous amount of resources and time on technology and marketing infrastructure to become the best in the business. We are excited to bring these assets to PRIMEDIA and scale them to their other categories beyond equine,” said Aaron Bromagem, founder and president of Equine.com. “We look forward to working with PRIMEDIA to build new and exciting networks that can represent significant revenue and profit streams over time.”
With an extensive background in both the equine industry and the Internet, Bromagem led Equine.com to become the most visited horse-related Web site on the Internet. Prior to founding Equine.com, he was part of Netcom’s technical team (now part of Earthlink) where he expanded their proprietary software to hundreds of thousands of customers. Shortly after, he joined Yahoo! as the ninth team member to help create the world’s leading online Web directory service. A mainstay at Yahoo!, he helped the company grow from 10 people to more than 2,000.
About PRIMEDIA
PRIMEDIA is the leading targeted media company in the United States. With 2004 revenue of $1.1 billion, its properties comprise over 135 brands that connect buyers and sellers through print publications, websites, events, newsletters and video programs in three market segments:
• Enthusiast Media is the #1 special interest magazine publisher in the U.S. with more than 120 consumer magazines, 115 websites, 100 events, 10 TV programs, 340 branded products, and has such well-known brands as Motor Trend, Automobile, Creating Keepsakes, In-Fisherman, Power & Motoryacht, Hot Rod, Snowboarder, Stereophile and Surfer.
• Consumer Guides is the #1 publisher and distributor of free consumer guides in the U.S. with Apartment Guide, Auto Guide and New Home Guide, distributing free consumer publications through its proprietary distribution network, DistribuTech, in more than 49,000 locations.
• Education includes Channel One, a proprietary network to secondary schools; Films Media Group, a leading source of educational videos; and Interactive Medical Network, a continuing medical education business.
About Equine.com
Equine.com is the world’s largest horse marketplace. Since 1995, the website has provided an online market for buyers and sellers of horses and horse-related products and services. The site averages 55,000 horses for sale or lease, as well as a comprehensive selection of horse products and services. The site is visited by more than 2 million visitors every month, the largest global audience on the Internet in its market.
About Legacy Capital
Legacy Capital (www.legacycapital.com) offers unparalleled investment banking services to private companies, specializing in mergers and acquisitions and private placements. The firm’s experienced team of professionals is dedicated to providing comprehensive representation and advisory services across a broad range of industries. Legacy Capital creates solid relationships with its clients through personalized service and by delivering exceptional results. Legacy Capital was founded in 1994 and is based in New Orleans, Louisiana. For more information, please contact Managing Directors Chip Porter or Marianne Van Meter