Talentum expands to Sweden with magazine purchase

Ekonomi & Teknik titles to Finnish ownership for EUR 15 million

print this

The Finnish media concern Talentum is to buy the Swedish magazine publisher Ekonomi & Teknik Förlag AB. The outright acquisition is valued at EUR 15.2 million, of which just under EUR 9 million will be in cash, and the remainder of the sum in Talentum shares.
      Ekonomi & Teknik Förlag, known generally in the trade as E & T, publishes several business magazines. Ny Teknik is similar to Talentum's own Tekniikka & Talous and is targeted at industry and engineers, and the weekly Affärsvärlden is similar to Talouselämä. There is also a specialist journal for the legal profession and a similar paper with an accent on environmental issues in business.
      E & T is expected to post net sales in the region of EUR 16-17 million this year. The company employs a staff of 130.
     
The Swedish publisher has undergone some fairly radical streamlining of late, following the purchase in 2004 of 50% of the share capital by the private equity fund Catella. At that time, Talentum was also showing interest in acquiring a stake in E & T, but according to Talentum CEO Harri Roschier the risk was considered too large. It was apparently seen as easier for a Swedish owner to carry out the task of downsizing and rationalising the company's operations.
      E & T has traded at a loss for the past couple of years, but it is believed that the company has turned the corner and that cooperation with Talentum's own publishing operations will put it back into profit.
      Talentum CEO Harri Roschier described the move as "a significant step towards strengthening our publishing operations and expanding into new market areas. Ny Teknik and Affarsvärlden, the company's major titles, are so similar to those of Talentum that cooperation will make an operational contribution in both countries."
     
Thursday's arrangements will increase the share of publishing in Talentum's activities to around 56%, up from 41% at the beginning of this year.
      A fortnight ago the company sold off its interest in the Finnish internet consultancy Satama Interactive. Talentum has also been looking into the Russian print market, and apparently this latest purchase does not completely rule out interest towards expansion into Russia.
      On Thursday the Talentum stock was down by around 1% on the E & T news.


Previously in HS International Edition:
  Media company Talentum backs out of agreement to buy state-owned Edita (24.1.2005)

Links:
  Talentum Stock Exchange Release, 6.10.
  Talentum
  E & T

Helsingin Sanomat