iVillage Acquires HealthCentersOnline
11 April 2005 - 11:29PM
PR Newswire (US)
iVillage Acquires HealthCentersOnline NEW YORK, April 11
/PRNewswire-FirstCall/ -- iVillage Inc. (NASDAQ:IVIL), The Internet
For Women(TM), a leading women's media company and the number one
women's community online, today announced that it has acquired
HealthCentersOnline, Inc., a privately-held, leading online
destination for physician-edited information on health conditions,
treatments and preventative care for patients. iVillage acquired
all of the outstanding equity of HealthCentersOnline for a total
consideration of $12.0 million. The acquisition price has been paid
with approximately $1.0 million in equity consideration, with a
deemed stock value of $5.99 per share, and approximately $11.0
million in cash. iVillage does not expect the acquisition to have a
material impact on iVillage's results of operations in 2005,
however, the Company does expect the acquisition to be accretive to
2005 earnings per share on a fully-diluted basis. iVillage
currently plans to provide further information on this transaction
when it reports its first quarter 2005 financial results after the
market closing on May 4, 2005. Douglas W. McCormick, Chairman &
Chief Executive Officer, iVillage Inc. said, "Healthcare
information is one of the top concerns for women and iVillage is
committed to expanding and deepening this vertical. We believe in
the increasing significance of and the growing consumer demand for
relevant and accurate health information on the web today. We find
that the caliber of the HealthCentersOnline offering makes it a
perfect addition and complement to the already top-notch
information that Healthology provides to iVillage. This acquisition
is a continuation of our strategy of adding to the iVillage
offering and gives us increased leverage with advertisers and
portals. It also demonstrates our continued focus on strengthening
the quality of iVillage website content and building our online
business while growing both our top and bottom lines." Josh Hamby,
Founder and CEO of HealthCentersOnline said, "We believe
HealthCentersOnline offers some of the most detailed and up-to-date
physician- edited information online. We strive to deliver the
highest quality services and applications online and emphasize the
importance of the physician-patient relationship. We are pleased to
be joining with the leading women's website and to introduce our
members to all that iVillage offers." HealthCentersOnline provides
healthcare information on the Internet for patients and their
families and helps patients understand the complex nature of
various conditions, diagnostic tests, treatment options and
preventive care. The Company creates health content through a
unique blend of original physician-edited articles, useful health
tools and high impact instructional animations and illustrations.
The management and staff work closely with the Company's advisory
boards, comprised of physicians who are board certified and
specialists in the topics available through HealthCentersOnline.
HealthCentersOnline began in 1999 with the launch of
HeartCenterOnline, a resource for cardiovascular patients and their
physicians. Since then, HeartCenterOnline has become one of the
most trafficked cardiovascular- specialized sites on the Internet.
McCormick added, "Heart disease takes the lives of more women each
year than any other condition, yet it is often preventable. This
marks the beginning of an iVillage initiative which will highlight
the fight against heart disease, with a network-wide commitment on
behalf of heart health for women." HealthCentersOnline has a
diversified revenue stream that includes advertising revenues,
subscription fees, licensing fees and e-commerce related revenues.
The Company's subscription services offer premium, physician-vetted
content including updated health, wellness and lifestyle
information, exercise regimens and meal planning, among other
topics. The Company also operates several sites focused on
condition-specific topics, including HealthyLivingOnline and
AllergyHealthOnline. HealthCentersOnline is based in Boca Raton,
Florida and has approximately 20 employees. It is expected that the
Company and its various properties will retain their brand, while
being closely aligned with iVillage's health and wellness area.
HealthCentersOnline content and tools are highly complementary to
the current Healthology video offering. Mr. Hamby will become
President, HealthCentersOnline and Senior Vice President,
Healthology Advertising Network, and will report directly to
Healthology President, Steven Haimowitz. iVillage believes this
reporting structure will enable effective and efficient operation
across its health offering. About iVillage Inc. iVillage is "the
Internet for women" and consists of several online and offline
media-based properties that seek to enrich the lives of women,
teenage girls and parents through the offering of unique content,
community applications, tools and interactive features. iVillage
Inc. (NASDAQ:IVIL) was established in 1995 and is headquartered in
New York City. Average monthly page views for iVillage.com and its
affiliate Web sites ("The iVillage Network") totaled nearly 374
million for the quarter ended December 31, 2004. In February 2005,
according to comScore Media Metrix, The iVillage Network ranked
31st among the top 100 Web and Digital Media properties with
approximately 16.6 million unique visitors in the United States and
had an average reach of approximately 10.4% of the total online
population and more than 14% of women 18+ online. Also, according
to the same report, The iVillage Network was the number one
"women's community site" and the number four "community site"
overall on the Web. For more information about iVillage, visit
http://www.ivillage.com/. Safe Harbor Statement under the Private
Securities Litigation Reform Act of 1995: iVillage Inc. has
included in this press release certain "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995 concerning iVillage's business, operations and financial
condition. The words or phrases "can be," "expects," "may affect,"
"anticipates," "may depend," "believes," "estimates," "plans,"
"projects" and similar words and phrases are intended to identify
such forward-looking statements. These forward-looking statements
are subject to various known and unknown risks and uncertainties
and iVillage cautions you that any forward-looking information
provided by or on behalf of iVillage is not a guarantee of future
results, performance or achievements. Actual results could differ
materially from those anticipated in these forward-looking
statements due to a number of factors, some of which are beyond
iVillage's control. In addition to those risks discussed in
iVillage's other press releases, public filings and statements by
iVillage's management, factors that may cause iVillage's actual
results, performance or achievements to differ materially from any
future results, performance or achievements expressed or implied in
such forward looking statements include: (i) the volatile and
competitive nature of the Internet industry and the media industry,
(ii) changes in domestic and foreign economic, political and market
conditions, (iii) the effect of federal, state and foreign
regulation on iVillage's business, (iv) the impact of recent and
future acquisitions and joint ventures on iVillage's business and
financial condition, (v) iVillage's ability to establish and
maintain relationships with advertisers, sponsors, and other
third-party providers and partners, (vi) iVillage's ability to
maintain or increase user traffic levels, (vii) the loss of one or
more of iVillage's major customers and (viii) the impact of pending
litigation on iVillage's business, results of operations and
financial condition. All such forward-looking statements are
current only as of the date on which such statements were made.
iVillage does not undertake any obligation to publicly update any
forward-looking statement to reflect events or circumstances after
the date on which any such statement is made or to reflect the
occurrence of unanticipated events. DATASOURCE: iVillage Inc.
CONTACT: Carl Fischer, iVillage Inc., +1-212-600-6502, ; Carina
Thate, , or Eliza Johnson, , +1-212-371-5999, The Abernathy
MacGregor Group, for iVillage Inc. Web site:
http://www.ivillage.com/
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