Think Partnership (CGI Holding Corporation) is a cross between Barry Diller’s IAC and Rupert Murdoch’s Fox Interactive.
Today Think has announced additional acquisitions, finished the Vintacom deal and added a high-power executive to the team.
Think has acquired all of the stock of Vintacom in exchange for 1,095,618 shares of THK common stock and $2.75 million in cash, of which $465,000 was held back pending the resolution of certain potential liabilities. The shareholders of Vintacom will also be entitled to an earnout payment, half in cash and half in the form of THK common stock, if the average annual pre-tax earnings of Vintacom during the first twelve full calendar quarters following the closing exceed $1.1 million. The Company expects the acquisition to add at least $1.1 million to its pre-tax income annually, and to be accretive to earnings. The Company funded the cash portion of the purchase price using funds borrowed from Wachovia Bank, which has increased its line of credit for the Company from $5 million to $7.5 million, in anticipation of our $15 million facility being closed later this month.
Vintacom has hosted over 14 million dating profiles since 1999, has over 2 million current profiles in its database and adds, on average, 200,000 new profiles each month. Although most subscribers live in the United States or Canada, roughly 30 percent of the profiles listed on Relationship Exchange dating sites are international.
Press Release.
Also announced today: Think announced that Frederick P. Lyte has joined the Company’s Board of Directors, current Director Xavier Hermosillo has joined the Executive Management team as Senior Vice President of Corporate Communications and Investor Relations of the Company, and Steven “Pat” Martin is leaving his position as President and CEO of the Company’s WebSourced subsidiary.
Press Release.
But wait, there’s more. Think Partnership Signs Letter of Intent to Acquire iLead Media, an Industry Leader in Online Sales Lead Generation. Internet sales lead generation for home-based businesses. The Company expects iLead to add more than $3 million of pre-tax income to the Company during 2006. The letter of intent contemplates that THK will acquire iLead for an upfront consideration of $7 million in cash and $7 million in common stock.
Press Release.
Think borrowed the money to buy Vintacom and is closing a $15 million bank loan. Vintacom has pre-tax earnings of $1M and 100 employees, so revenue per employee is $10. No doubt the details of the financials will be held up to a certain amount of scrutiny and speculation in coming weeks.
Think’s stable of 11 operating companies (search engine marketing, dating and several other un-related properties) are worth reviewing, disparateness and commonalities abound.
Barry and Rupert have regretted several seemingly straightforward acquisitions when shareholders cried foul. Is Think having an identity crisis or is it in the middle of executing a strategically sound growth period? THK is trading down 7% on today’s news.
[tags: think+partnership, vintacom]
