Online marketing services company ValueClick is buying financial information and investing education website Investopedia from Forbes for approximately $42 million in cash.
Founded in 1999, Investopedia provides visitors with a glossary of financial terms, news articles, tutorials and education tools. The multiple used is roughly x8 the 2010 EBITDA.
Forbes had acquired Investopedia for an undisclosed amount back in 2007.
Investopedia.com boasts the following statistics:
- 2.2 million unique U.S. visitors per month (comScore, June 2010)
- 5.1 million visits (DoubleClick Ad Planner, July 2010)
- 18 million page views (DoubleClick Ad Planner, July 2010)
- 3.1 million newsletter and 1.7 million e-mail subscribers, and 1.3 million stock simulator users
- $10 million of revenue and $5 million in adjusted EBITDA
- nearly 30,000 pieces of evergreen financial related content and develops an additional 7,000 pieces of content each year
- generates the majority of its traffic organically
- monetizes primarily by selling cost-per-impression display advertising
Investopedia’s management team and employees have been retained by ValueClick and the business will run as a wholly-owned subsidiary.
The company is expected to generate about $10 million in revenue by the end of this year.