S&P Global Market Intelligence provides a wrap-up of U.S. companies' media and communications deal announcements and completions from Feb. 26 to March 2.
* Harte-Hanks Inc. sold its 3Q Digital business to an entity owned by certain former 3Q Digital owners, including 3Q Digital CEO David Rodnitzky. Terms of the transaction includes a cash payment of $5 million to Harte Hanks, and up to an additional $5 million in cash payable to Harte Hanks if the 3Q Digital business is sold again. Harte-Hanks said March 2 that the $35 million earn-out related to the company's acquisition of 3Q Digital in 2015 was assigned to the buyer.
* News Corp.'s HarperCollins Publishers bought the trade book assets of AMACOM from the American Management Association International. HarperCollins will take over all front list and backlist publication, sales, distribution, and licensing of the more than 600 books in AMACOM's catalog, according to a March 2 news release. AMACOM, which mainly focuses on personal and professional growth and business leadership, will be a sub-imprint of the recently launched HarperCollins Leadership imprint.
* A consortium backed by Ron Burkle has reached an agreement to purchase assets from the embattled Weinstein Co. LLC, Variety reported March 1. Weinstein Co. brokered a deal with Burkle and his investing partner, Maria Contreras-Sweet, with New York Attorney General Eric Schneiderman facilitating the revival of the deal that had broken down twice. Under the agreement, the buyers will assume $225 million in existing debt under a credit facility and pay out $275 million in equity, of which approximately $100 million will become operating capital for the new company.
* Proofpoint Inc has completed its acquisition of Wombat Security Technologies Inc. Proofpoint said that through the acquisition, its customers will gain access to phishing campaigns as seen by non-Proofpoint customers, providing broader visibility and insight to its technology platform. The company expects the purchase of Wombat Security Technologies to increase its revenue range in the first quarter to $151 million to $153 million, from $149 million to $151 million. Non-GAAP net income, however, is now projected to be approximately $7.5 million to $8.5 million, versus prior estimates of $8 million to $9 million.
* Internap Corp. completed its $132 million acquisition of Chicago-based SingleHop LLC, a provider of hosted private clouds and managed hosting. Internap funded the acquisition with an incremental term loan and cash from the balance sheet. As part of the financing, Internap entered into an amendment to its credit agreement to allow for the incremental term loan and to provide further operational flexibility under the covenants.
* Zayo Group Holdings Inc. on Feb. 28 completed its acquisition of Spread Networks, a privately owned telecommunications provider that operates an 825-mile, high-fiber count long haul route connecting New York and Chicago. As a result of the deal, Zayo will introduce a stand-alone business unit, Spread Networks by Zayo, which will be reported under its Fiber Solutions business segment. Zayo acquired Spread Networks for $127 million in cash.
* The U.K.'s Cineworld Group plc on Feb. 28 completed its acquisition of Regal Entertainment Group. Cineworld paid about $3.6 billion, excluding related transaction fees and expenses and repayment of certain company debt. Each share of Regal's class A common stock and class B common stock was automatically converted into the right to receive $23 in cash, according to a Form 8-K filed Feb. 28.
* Straight Path Communications Inc. completed its merger with Verizon Communications Inc., the companies said Feb. 28. Straight Path will become a direct, wholly owned subsidiary of Verizon, and as a result, its shares will be delisted from the NYSE American. Trading of Straight Path shares was suspended before the open of business Feb. 28. Verizon in May 2017 agreed to buy Straight Path for $184 per share, reflecting an enterprise value of about $3.1 billion.
* New Media Investment Group Inc. is buying The Register-Guard in Eugene, Ore., for about $14.3 million. Announcing deals in Eugene and in Massachusetts, Michael Reed, president and CEO of the company, said Feb. 28 that The Register-Guard is "expected to be a great addition to our footprint in the west, with its long history of being the dominant source of news in the Willamette Valley and over 47,000 Sunday circulation."
* As expected, California-based eBay Inc. has agreed to acquire the Japanese assets of online marketplace operator Giosis Pte. Ltd., which include the Qoo10.jp shopping platform. As part of the transaction announced Feb. 27, eBay will give up its investment in Giosis' non-Japanese businesses. The company has been an investor in Singapore-based Giosis, which runs e-commerce marketplaces across Asia, since 2010.
* Meredith Corp. agreed to sell Time Inc. UK to Epiris Fund II LP. The transaction is expected to close by the end of the first quarter, Meredith said Feb. 26. Meredith bought Time Inc. UK on Jan. 31, as part of its acquisition of Time Inc.
