"The process of finding a range of suitable acquirers for the Cyclingnews.com business required a very strong understanding of the digital media environment, as well as the ability to see the potential that the business offered to the right company. The team from Deloitte were able to offer that skill set, as well as being excellent negotiators as we went through the sale process, teaming up brilliantly with our legal firm. Cyclingnews.com was a unique digital media property in Australia, given its global audience, but Deloitte was able to not only grasp the specialised nature of this growing business, but relay it to the international market. It achieved a very satisfactory outcome for us."
 
Gerard Knapp, Proprietor, Knapp Communications Pty Ltd

Our role:
Deloitte Corporate Finance (DCF) acted as financial advisor to Knapp Communications Pty Ltd on the disposal of Cyclingnews.com to Future Plc, a UK-based LSE–listed international special-interest media group. Cyclingnews.com is the leading global website for cycling news and information, providing editorial content and images, race results, and other cycling-related information on road cycling, mountain biking, track racing, cyclo-cross and BMX.

The deal was a two stage process.

In the first stage of the disposal mandate, DCF assisted the client in preparing and distributing an information memorandum as a part of a formal sale process. On behalf of the client, DCF identified and contacted potential purchasers in Australia, Europe and the US and solicited indicative offers from interested parties based in Australia, UK and US.

In the second stage of the mandate, DCF reviewed the indicative offers received, advised the client on short-listing the bidders, assisted the client in setting up a data room while working closely with the client’s external accountant and legal adviser, assisted the client in liaising with the preferred bidder under an exclusivity arrangement, and led the negotiations surrounding the sale, which included working closely with the client and the client’s accountant and legal adviser in the negotiation of the sale agreement through to deal completion on 3 July 2007.

Deal Value: undisclosed

Date: 2007