InfoUSA paid $6.6 million for its June 1 acquisition of list brokerage and management firm Mokrynskidirect.
Much of that price — $4.8 million — was “goodwill”, a consideration paid above the net value of the company. While Mokrynskidirect had assets, property and equipment valued at $13.6 million, it also bore liabilities of $11.8 million, which infoUSA assumed.
The acquisition was the latest in a string of purchases the Omaha, NE-based data firm has made. Other recent transactions include Millard Group, which infoUSA bought for $12.4 million at the initial sale in November 2005. InfoUSA paid an additional consideration of $1.5 million in April 2006. Both firms operate under the umbrella of infoUSA’s Donnelley Group.
During the past decade, infoUSA has made 25 acquisitions within the list, data, database and marketing delivery system fields. Within the list industry, one early acquisition, Walter Karl Inc., looms large: It was acquired in March 1998 for $19 million, nearly all of which was goodwill.
During the most recent quarter, both the Millard and Mokrynskidirect acquisitions depressed the Donnelley Group’s operating income, which dropped from $24.5 million a year ago to $23.1 million. InfoUSA attributed the drop in operating income to the seasonal nature of Millard and Mokrynskidirect’s business. The units sales rose from $59 million to $63.4 million during the same period.
For the first six months of the year, however, Donnelley’s sales were $128.4 million, up from $116.3 million a year earlier (in part due to the acquisitions) and its operating income rose from $47.5 million to $50.3 million. Like Millard and Mokrynskidirect, Walter Karl is part of the Donnelley Group.
For the quarter, parent company infoUSA reported net sales of $102 million, up from $99.7 million a year ago. Its net income dropped from $5 million to $2.7 million.
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