Chuck Richard, VP & Lead Analyst, Outsell Inc. comments in a recent Outsell Insight on Penton’s acquisition of Aviation Week. 

Implications: When Outsell analyzed Penton’s 2012 acquisition of Farm Progress, an action that raised its  agriculture sector to 20% of total revenue, we stressed that more acquisitions were likely to follow  in other sectors as Penton doubles down in key markets and  de-emphasizes businesses in non-core markets (see Insights 15 November 2012, Penton Shows the First of Its Cards).  Penton’s acquisition criteria include potential for engagement with audiences and marketers including marketing services, and potential for underlying growth including exports into mainly developing countries.

At Aviation Week, 20% of subscribers live outside the US, and five of its 10 in-person events are held outside the US.

We also noted (see Insights 30 August 2012, Welcome to the Age of Precision) that “information industry markets have entered the Age of Precision M&A and exited the Age of Portfolio Diversification M&A of the 1990s and early 2000s …. Now, buyers are being surgically precise in selecting specific acquisition targets.” Aviation Week is a precision fit, and more than doubles Penton’s aviation revenue to approximately 20% of total company revenue, making it a rapid accelerator in a market in which Penton was already operating. As for growth potential, Kieselstein stresses that one of Aviation Week’s strengths is its leading presence in the high-growth aviation maintenance, repairs and operations (MRO) business, quipping “that’s where all the money is made; just ask your car mechanic!”

Source:  Outsell Inc.