LOOP acquires Cityfeet.com for $15 million in cash:
LoopNet Acquires Cityfeet.com, the Largest Distribution Network for Commercial Property Listings
Thursday August 2, 4:16 pm ET
Cityfeet Network of Over 100 Online Partners to Provide Increased Exposure Opportunities for LoopNet Listings
SAN FRANCISCO--(BUSINESS WIRE)--LoopNet, Inc. (NASDAQ:LOOP - News), which operates the largest commercial real estate marketplace online, announced today that it has acquired privately held Cityfeet.com. Cityfeet operates the largest online distribution network for commercial property listings and the second largest online marketplace for commercial property listings at Cityfeet.com, with over 100,000 active listings. The Cityfeet Network distributes commercial property listings to over 100 partners, including the online websites of the New York Times, the Boston Globe, the Los Angeles Times, the Chicago Tribune, the Dallas Morning News and the Atlanta Journal-Constitution.
"The combination of LoopNet and Cityfeet.com will bring great benefits to both LoopNet and Cityfeet customers," said Richard Boyle, LoopNet's CEO and President. "By bringing together the largest online marketplace and the largest distribution network, we will be providing unmatched exposure opportunities for both LoopNet and Cityfeet commercial property listings."
"The acquisition by LoopNet validates Cityfeet's long term strategy of building the largest distribution network in the commercial real estate sector, and the unique value that Cityfeet delivers in marketing commercial properties," said Fred Saint, CEO of Cityfeet. "We are excited to be part of the LoopNet family, and look forward to continuing to offer great service to our customers."
LoopNet has purchased Cityfeet for an aggregate cash consideration of $15 million, with an additional potential future consideration of $3 million cash if certain performance targets are met. LoopNet expects that Cityfeet will add approximately $1 million in revenues to LoopNet for the remainder of 2007. While Cityfeet has been consistently profitable as a standalone business, LoopNet expects the transaction to have no significant impact on 2007 EBITDA, and to be dilutive to 2007 EPS in the range of approximately ($.02) per diluted share due to various acquisition related expenses. Impact on the Company's financials beyond 2007 will be incorporated in the guidance given for 2008.
The LoopNet marketplace, available at www.LoopNet.com, is the most heavily trafficked commercial real estate website with 950,000 average monthly unique visitors during the second quarter of 2007, according to comScore. The LoopNet marketplace covers all commercial property categories, including office, industrial, retail, multifamily, hotel, land, specialty properties, and businesses for sale.
Pacific Crest Securities served as an advisor to LoopNet on this transaction.
Conference Call Information
LoopNet, Inc. will discuss the acquisition with investors on a conference call to be held at 2:00 p.m. PDT, 5:00 p.m. EDT, today. To participate in the conference call, please dial 888-802-2269 if you are calling from within the United States or 913-312-1272 if you are calling from outside the United States. Investors may also listen to a live web cast of the conference call on the investor relations section of our website at investor.LoopNet.com/events.cfm. For investors unable to participate in the live conference call, an audio replay will be available until Tuesday, August 7, at 8:59 p.m. PDT. To access the audio replay, dial 888-203-1112 within the United States or 719-457-0820 internationally and enter confirmation code 4664976. A web cast replay of the call will be available on the investor relations section of our website at investor.LoopNet.com/events.cfm approximately two hours after the conclusion of the call and will remain available for 30 calendar days.
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About Cityfeet.com
Cityfeet is the leading online commercial real estate network, connecting commercial real estate property owners, brokers, tenants and investors. Cityfeet offers commercial real estate products and services catering to the national and local needs of the commercial real estate industry. Cityfeet specializes in all commercial real estate property categories including office space, executive suites, commercial land, industrial property, retail space and businesses for sale. Cityfeet powers the commercial real estate areas of some of the most popular websites in the U.S., including the New York Times, the Boston Globe the Los Angeles Times, the Chicago Tribune, the Dallas Morning News and the Atlanta Journal-Constitution. Visit www.Cityfeet.com for more information.
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