Early this morning, multimedia publishers Dex One and SuperMedia announced their intention to merge the companies into new entity Dex Media. The newly-formed company will have approximately $3.1 billion in revenue, based on 2011 financial reports. It will also employ over 3,100 marketing consultants and more than 5,800 employees. Ownership will be comprised of 60% Dex One shareholders with the remaining 40% comprised of SuperMedia shareholders. Dex Media will maintain relationships with more than 700,000 local businesses across the United States.
“We believe this merger is in the best interests of shareholders, lenders, customers, employees and consumers,” said Alan Schultz, chairman of the board of directors of Dex One. “Dex One and SuperMedia are closely aligned with a solid value proposition for local businesses, and we expect the transaction to generate significant operational and financial synergies, which will create additional investor value.” Peter McDonald, current CEO of SuperMedia, will become CEO of Dex Media. Dex One CEO Alfred Mockett will step down at the completion of the merger, which is expected in the fourth quarter.
“For the past two years, Dex One and SuperMedia have been on the same path of transformation, fully embracing digital media to help businesses grow through a complete suite of marketing solutions provided by our local consultants,” said Peter McDonald, president and CEO of SuperMedia. “Our common goal over many decades has been to drive results for local advertisers. By joining together, we will have nationwide presence to increase market share and achieve operating and service efficiencies. Having spent time in my career at Dex One and SuperMedia, I know that the great attitudes, best thinking and best practices of the talented individuals at both companies will combine to enhance the value we deliver to our clients and investors.”
Following the merger, the Yellow Pages market in the United States will now be the playground of three major players. YP Holdings (the former Yellow Pages division of AT&T), the newly-formed Dex Media, and Yellowbook (owned by Hibu) will provide the vast majority of all print and internet Yellow Pages products.
The full press release may be found HERE.