Business-information provider D&B Corp. has acquired First Research for $22.5 million in cash.
Raleigh, N.C.-based First Research provides Internet-based content, such as marketing research and industry trends, that is tailored for use by sales professionals. D&B said that it plans to enhance its Hoover’s Inc. database with deeper, industry-specific content through the acquisition, and added that the deal has an earn-out potential of up to $4 million based on the unit’s financial performance.
D&B chairman and chief executive Steve Alesio said that the acquisition is part of the company’s strategic growth plan for two key reasons. First, the deal supports D&B’s plans for growing its Hoover’s online presence, and second, the deal supports D&B’s goal to delivering profitable revenue growth over time.
First Research generated 2006 revenues of $6.5 million, nearly 30 percent growth over its 2005 numbers. Because of accounting rules -- specifically the treatment of deferred revenue -- D&B said that it does not expect the First Research acquisition to have a material impact on its 2007 revenues, or an impact on D&B’s 2007 financial guidance.
D&B’s global commercial database contains more than 110 million business records, and its products are aimed at helping companies maximize cash flow and profits, convert prospects into clients, and protect businesses from supply chain disruption and serious financial, operational and regulatory risk.
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