Harte-Hanks to Expand Services to the High-Tech Industry Through Acquisition of ZD Market Intelligence - Company Business and Marketing

Edge: Work-Group Computing Report, Sept 6, 1999

Harte-Hanks, Inc. (NYSE:HHS) has signed a definitive agreement to acquire ZD Market Intelligence (ZDMI), a unit of Ziff-Davis Inc., for $101 million cash. ZDMI is a leading provider of database products and solutions to the high-tech and communications industries in the United States, Canada and Europe.

ZDMI is expected to generate 1999 revenues of approximately $50 million. The transaction, which should close in the next 45 days subject to standard regulatory approvals and closing conditions, is expected to be accretive to Harte-Hanks' free cash flow per share and neutral to Harte-Hanks' earnings per share in the first year.

The announcement was made by Larry Franklin, Harte-Hanks Chairman and Chief Executive Officer, and Richard Hochhauser, Harte-Hanks President and Chief Operating Officer.

ZDMI, formerly known as Computer Intelligence, provides information and buying plans on technology and communications infrastructure at 375,000 business sites in the United States, Canada and Europe. The company's products and services are critical business tools for sales and marketing professionals in over 1,500 technology and communications organizations. ZDMI is headquartered in La Jolla, California, and has international offices in France, England, Germany, Ireland and Spain.

Commenting on the acquisition, Franklin said, "It is rare to find an acquisition opportunity that fits our company in so many unique ways. ZDMI expands the database solutions we provide to the high-tech industry. It also strengthens our international presence and provides us with exciting, new media capabilities. It is a well-managed organization with a business culture similar to our own. We believe these unique characteristics will lead to stronger relationships with our customers and greater opportunities for people in both our companies."

Hochhauser added, "The database elements of ZDMI offer a powerful tool to add new high-tech customers and create strong cross-selling opportunities, both among Harte-Hanks and ZDMI customers, in this our fastest growing industry segment. By combining our leadership positions, we can enhance the services we provide to the high-tech industry and strengthen our relationships in this important market segment."

Based in San Antonio, Texas, Harte-Hanks owns and operates an integrated direct marketing company that provides a full range of specialized, coordinated and integrated direct marketing services including response management, database marketing and marketing services. The company also owns and operates shoppers that are zoned into more than 756 separate editions reaching over 9.1 million households in California and Florida each week.