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Yellow Media Inc. Announces the Divestiture of LesPAC(November 14, 2011)
MONTREAL, QUEBEC -- (Marketwire) -- 11/14/11 -- Yellow Media Inc. (TSX:YLO) announces that it has sold the assets of LesPAC Inc. to Mediagrif Interactive Technologies Inc. for a purchase price of $72.5 million. The transaction is effective immediately.
Given its consumer-to-consumer business model, the sale of LesPAC.com will further allow Yellow Media to concentrate its efforts on fully serving Canadian businesses via the Yellow Pages 360 degrees Solution (www.yellowpages.ca/360)(1) and being Canada's leading performance media and marketing solutions Company. "This divestiture enables us to focus on our core business through continued investments towards our digital transformation." said Marc P. Tellier, President and Chief Executive Officer of Yellow Media Inc.
The purchase price consideration was paid in cash. Proceeds from this divestiture will be used to reduce indebtedness and reinvest in the business.
Mediative, Yellow Media's national digital marketing division, will continue to market and sell display advertisements on LesPAC.com on an exclusive basis. The Promo du Jour group buying service site and business will remain a property of Yellow Media Inc. and will continue to be advertised and offered through LesPAC.com.
LesPAC.com was created in 1996 and operates a web site of classified ads in the generalist category. For the year ended December 31, 2010, LesPAC Inc. reported revenues of $12.7M.
About Yellow Media Inc.
Yellow Media Inc. (TSX:YLO) is Canada's #1 Internet company through its network of companies that include Yellow Pages Group and Canpages. Yellow Media Inc. owns and operates some of Canada's leading properties and publications including Yellow Pages(TM) directories, YellowPages.ca(TM), Canada411.ca(TM), and RedFlagDeals.com. Its online destinations reach approximately 9 million unique visitors monthly and its mobile applications for finding local businesses and deals have been downloaded over 3.0 million times. Yellow Media Inc. is also a leader in national digital advertising through Mediative, a digital advertising and marketing solutions provider to national agencies and advertisers. For more information, visit www.ypg.com.
Caution Concerning Forward-Looking Statements
This press release contains forward-looking statements about the objectives, business and affairs of Yellow Media Inc. These statements are forward-looking as they are based on our current expectations, as at November 14, 2011, about our business and the markets we operate in, and on various estimates and assumptions. Our actual results could materially differ from our expectations if known or unknown risks affect our business, or if our estimates or assumptions turn out to be inaccurate. As a result, there is no assurance that any forward-looking statements will materialize. We disclaim any intention or obligation to update any forward-looking statements, except as required by law, even if new information becomes available, as a result of future events or for any other reason.
(1) This unique value proposition is a key element of Yellow Media Inc.'s digital transformation, enabling customers to get unprecedented visibility with online, mobile and print media platforms, and access to various services such as web site development, search engine marketing and search engine optimization.
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