Chatsworth, Calif.—In a deal that raises its visibility in b-to-b media, 1105 Media Friday announced it has reached an agreement to acquire Post Newsweek Tech Media from Washington Post Co. Financial terms were not disclosed but people familiar with Post Newsweek pegged the price at $25 million to $35 million.
Post Newsweek Tech Media produces several magazines and events, including Defense Systems, Government Computer News, Government Leader, Washington Technology and the FOSE trade show.
1105 Media was formed earlier this year when b-to-b media veteran Neal Vitale, backed by private equity firms Nautic Partners and Alta Communications, bought 101communications and Stevens Publishing.
“Although 1105 Media is a new company, we have deep roots in the government community through our publication Federal Computer Week and its associated online products and vertical conferences,” Vitale said in a news release. He added that the “transaction will allow us to serve government readers and advertisers with more timely and targeted information.”
Baran Rosen, president of media investment bank Whitestone Communications, said it was only a matter of time before the Washington Post Co. unloaded Post Newsweek Tech Media. "[The portfolio] really didn’t fit with the Post Co. and does fit nicely with Neal’s portfolio," Rosen said. "Neal has a great track record, and the acquisition shows he’s trying to build a block of tech titles."
He added: "The caveat emptor is what happens if there is another tech bust. He runs a risk by putting all of his eggs in one basket."
The addition to 1105 Media’s portfolio will provide media buyers with more than 240,000 government subscribers and government channel decision-makers.
The deal marks the second acquisition for 1105 Media in as many months. In November the company said it was acquiring Contingency Planning and Management Group from MCG Capital Corp. Financial terms of that deal were not disclosed.