In a testament to the value of corporate communications, West Corporation recently announced that it will acquire Nasdaq’s (NASDAQ: NDAQ) Public Relations Solutions and Digital Media Services, both segments of Nasdaq’s Corporate Solutions business. Valued at $335 million, the acquisition dovetails with West Corporation’s technology-driven communication services, which include unified communications services, safety services, interactive services such as automated notifications, specialized agent services and telecom services. Nasdaq’s Corporate Solutions business provides an array of intelligence and communications tools, technology and advisory services to help businesses better engage investors, the investment community and the public. Nasdaq said it would use the proceeds of the deal for share buybacks.
The deal shows not only the value of information, but, even more importantly, the value of effective corporate communications. In an increasingly cluttered environment of irrelevant information and an overload of news, cutting through the cacophony of noise and confusion is proving to have enormous worth. Businesses around the world are searching for better ways to disseminate information and efficiently communicate messages and value propositions.
West Corporation was purchased last year by New York-based private-equity firm Apollo Global Management. Private equity firms are renowned for finding and buying undervalued companies in high growth sectors, tweaking the business to enhance value, then selling or spinning off segments for exceptional returns. The acquisition of Nasdaq’s communications segments by West reveals the inherent and future value that private equity places on corporate communications.
In a news release announcing the acquisition, John Shlonsky, chief executive officer of West Corporation stated, “This acquisition will complement and broaden our portfolio of products and services. We see tremendous opportunity to grow and enhance this business. We are also excited to partner with NASDAQ and add the talented Public Relations Solutions and Digital Media Services teams to West.”
Products and services acquired in the transaction include:
- GlobeNewswire: a global press release distribution platform and media contacts database with analytics
- Webhosting: a web hosting service purpose-built for investor relations and external communications functions
- Webcasting: a multimedia service that publishes webcasts, webinars, video presentations and other content
- Media Intelligence: a media monitoring and analyst-curated daily news reporting service
- Influencers Database: a service to identify and connect with relevant journalists and social media profiles
Nasdaq also entered an exclusive multi-year partnership with West to provide Nasdaq clients seamless access to the products and services included in the transaction.
Businesses around the world have long realized – and now private equity has verified – the immense value of effective corporate communications.
To view the full press release, please visit http://ibn.fm/eoH8d
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