The split is a result of the company being overleveraged following its $630 million acquisition by Apax Partners, a private equity fund, in 2007. Apax will keep control of what is essentially the American Lawyer Media business in the U.S., which will once again be branded as ALM, according to an internal memo from CEO William Pollak.
Royal Bank of Scotland will own a 49% stake in the U.S. business. Banks will take over Incisive’s “struggling” U.K. arm, according to a story posted on FT.com. The story also said that as part of this deal, Apax will invest $15 million into ALM and its debt will be reduced from $450 million to $300 million.
“As a result of new agreements signed by our owners and lenders, we will once again become an independent, standalone company, with our own management, board of directors and financing, operating under the ALM brand. While the agreements are pending regulatory approval in the U.K., we expect to make a formal announcement next week,” Pollak wrote in the internal memo to employees.