MetroWest Daily - April 6, 2005
Newton's Questex Takes Over Assets of N.Y. Company
By Andrew J. Manuse
NEWTON -- A new business-to-business marketing company will set up home base here, building on the shedded assets of a New York company. Questex Media Group Inc. will take over five portfolio groups covering information technology, communications, travel, hospitality, beauty and home entertainment from Advanstar Communications Inc. for about $185 million in cash, the New York company said.
The deal, which represents 23 trade publications, 50 Web sites, 21 exhibitions and 25 conferences that generated $100 million in revenue last year, will close by the end of the month, said the new company's president and chief executive, Kerry Gumas. Advanstar will hold on to publishing, trade show and other operations within its fashion, license, motor vehicle, health care, science and pharmaceutical groups, which generated about $275 million in revenue last year, Advanstar said. It was difficult to fund all the opportunities we had across divisions (prior to this move)," said Gumas, who said he led the effort to buy Advanstar's assets. "We felt splitting into two operating companies would be the best opportunity (for both firms)."
Gumas was vice president and general manager of Advanstar's information technology and communications group, which was located at the same facility in Newton where the new company's headquarters will be based. The company will start with 400 employees, Gumas said, and will add to that as the needs of the business develop. Many of Advanstar's executives and industry veterans will join the new company under Gumas' leadership.
Funding for the acquisition was supplemented by the Audex Group, an investor in middle-market companies with offices in New York and Boston. The acquisition included Advanstar's businesses in Brazil, Asia and Europe, Gumas said. Latin America and Asia are currently technology-focused, while Europe is centered on travel and hospitality, he said. Part of Questex's strategy will be to expand into each industry it covers in each of its geographical locations, he said. But first, Questex will develop back office operations in Newton so it will work as a corporate headquarters, he said.
We have to move our divisions and the people who are in them to stand-alone facilities and operating units," said Gumas. Growth and development will happen afterward, he said. We are absolutely ecstatic about the location here in Newton," said Gumas, particularly because of the high-quality employees the Greater Boston region offers. But he also favored the office location, which sits near the intersection of the Mass. Pike and Rte. 128.
IDG Group also publishes business-to-business magazines out of Framingham, but Gumas said the two companies would only compete "in a small way." Questex is a niche company diversified into multiple industries, while IDG covers different aspects of the tech industry, he said.