With StarCite Deal, Active Network Deepens Focus on Business Events
[Updated 1/5/12 8:05 am. See below.] San Diego’s Active Network (NYSE: ACTV) made roughly 50 acquisitions since it was founded (in 1998), but the company has become more deliberate about its deals since it paused in 2010 to overhaul its Software as a Service technology and prepare for last year’s IPO.
The Active Network provides Web-based event registration and related services, and most of its acquisitions have helped the company expand its business beyond online registration for recreational sporting events to include outdoor activities, online communities, and corporate business events. As CEO Dave Alberga told me in August, the company is now targeting a $10 billion market that wasn’t really apparent before the rise of Software as a Service.
Today the company is announcing its latest deal—the acquisition of StarCite, a Philadelphia, PA-based provider of Web-based meetings management, meetings procurement, and online event registration management. It reflects a more concerted focus by the Active Network on the multi-billion dollar business conference and events industry.
[Updates financial terms] In a regulatory filing this morning, the Active Network values the deal at $57.7 million in cash and stock, including $6.6 million in outstanding debt. StarCite has 300 employees and maintains offices in San Jose, CA, London, Dusseldorf, Shanghai, and Hong Kong to serve its target market of global 2,000-size companies. The privately held company was founded in 1999, and has received at least $15 million in venture funding from the ICG Group (NASDAQ: ICGE), TPG Ventures, and Norwest Venture Partners (NVP).
One intriguing aspect about the deal is that it follows a strategic partnership with the Professional Convention Management Association (PCMA) that the Active Network disclosed a few days before Christmas. As part of this new alliance, the Active Network says it’s providing its … Next Page »