Internet Brands, a provider of vertically-focused online media and software services and a portfolio company of Hellman & Friedman and JMI Equity, has signed an agreement to be acquired by KKR. Hellman & Friedman and JMI acquired Internet Brands for $640 million in September 2010.
KKR is making its investment in partnership with Internet Brands chief executive officer Bob Brisco and the Internet Brands management team, who will hold a minority stake in the company and continue to run the business. “We’re delighted to be partnering with KKR at this important juncture in our business, when we have dramatically expanded our client solutions portfolio and our growth in key areas is accelerating,” said Mr. Brisco.
Internet Brands is an Internet media company that operates a network of over 100 niche vertical websites in end-markets such as auto, careers, finance, health, home, shopping and travel. The company’s properties attract over 100 million unique visitors per month. Revenues are generated primarily through online advertising, with direct sales to over 100,000 national and local advertisers. The company has approximately 1,600 employees and is headquartered in El Segundo, CA (www.internetbrands.com).
“Internet Brands is at an exciting inflection point of growth as the company transitions from a portfolio of web assets to a vertically integrated provider of media and client software solutions,” said Herald Chen, Member of KKR and Co-Head of the firm’s technology investing team. “Its growth has been driven by its propriety operating platform and a management team with a focused vision. We look forward to partnering with the team and supporting the company in its next phase of growth.”
KKR makes private equity, fixed income and other investments in companies in North America, Europe, Asia and the Middle East. The firm has $90 billion in assets under management. KKR was founded in 1976 and in addition to its New York headquarters the firm has offices in Menlo Park, San Francisco, Houston, Washington DC, London, Paris, Hong Kong, Tokyo, Beijing, Mumbai, Dubai and Sydney (www.kkr.com).
“We have had a very successful partnership with Bob and the entire Internet Brands team. We are proud of the company’s performance and transformation, and wish the team continued success under KKR’s ownership,” said Tarim Wasim, Managing Director of Hellman & Friedman.
Hellman & Friedman invests from $200 million to $750 million in companies across a range of industries including energy & industrials, software, business & marketing services, internet & digital media, financial services, insurance, media, and healthcare. Founded in 1984, the firm has raised and managed over $25 billion of committed capital and invested in over 60 companies. The firm is currently investing its sixth fund, with $8.4 billion of capital commitments. Hellman & Friedman is based in San Francisco with additional offices in London and New York (www.hf.com).
JMI Equity is a growth equity firm that invests in software and technology-enabled services companies. Founded in 1992, JMI has invested in 110 businesses and has over $2.1 billion of committed capital under management. The firm has offices in San Diego and Baltimore (www.jmi.com).
2014 PEPD • Private Equity’s Leading News Magazine • 6-3-14