Subject: November 9, 2006 -- CM BREAKING NEWS: Kable Buys Palm Coast Data/ABC Conf.

From: "Circulation Management" <[email-masked]>
Date: Thu, 09 Nov 2006 10:42:43 -0500

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Your Circulation News >> Thursday, November 9, 2006

IN THIS ISSUE

NEWS
Kable Acquires Palm Coast Data for $92 Million
The Nuts & Bolts of Audit Rule Changes

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NEWS

Kable Acquires Palm Coast Data for $92 Million

By Kristina Joukhadar

Kable Media Services Inc. unit of Amrep Corp. will buy Palm Coast Data Holdco Inc. for about $92 million, CM learned yesterday. Kable and Palm Coast clients received the news about the acquisition in the form of an email.

Kable plans to finance the acquisition using a combination of internal funds and borrowings. The deal is expected to close in early 2007, subject to regulatory review and other customary closing conditions.

Sources close to the story say that John Menough, president of Palm Coast, will probably head the new joint company. Sources also note that the SEC may become involved in the acquisition due to the size of the companies and their position as two of the top players in the fulfillment services industry.

Industry consultants say they are not surprised that consolidation like this would occur when so much investment is needed to upgrade existing systems and stay ahead of the curve in this fiercely competitive marketplace. Yet most publishers have not wanted to partner with their fulfillment companies on enhancements, but rather prefer to negotiate lower prices.

The Nuts & Bolts of Audit Rule Changes

Las Vegas, NV.—Against a volley of confrontational questions from the packed audience at the Periodicals Nuts & Bolts session of the Audit Bureau of Circulations annual conference introductory session yesterday, Teresa Perry explained the bureau’s new rules in as much detail as possible.

Although the rule changes that have been passed by the bureau over the past six months—like the creation of the non-paid verified circulation category, the paid net of all considerations rule, the changing definitions of deductible partnerships and sponsored circ—were fully explained according to the letter of the new ABC rules, the questioning went deeper than just the rules...

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