TheStreet to sell The Deal, BoardEx for $87.3 million, CEO Callaway resigns
TheStreet Inc. announced that it has entered into an agreement to sell its institutional business units, The Deal and BoardEx, for $87.3 million to Euromoney Institutional Investor PLC.
The deal is expected to close in early 2019. After it closes, chief executive officer David Callaway, who has been with the company since 2016, will leave the company.
“The primary goal of our board and management team has always been to maximize shareholder value, and the sale of our B2B business to Euromoney is a unique opportunity to do just that,” said Callaway in a statement. “Our board decided this was the best path to maximize value following our recent sale of RateWatch.”
The company’s shares rose 46 cents, or 30 percent, to $1.98 in Thursday morning trading.
The Deal and BoardEx, which reported revenue of $23.8 million in 2017, has offices in New York, London, Wisconsin, Washington, San Francisco and Chennai, India. TheStreet acquired The Deal in 2012 and BoardEx in 2014.
Euromoney Institutional Investor includes Institutional Investor, BCA Research, Ned Davis Research, Metal Bulletin, American Metal Market and Insurance Insider.
After Callaway departs, Eric Lundberg will become CEO and will also continue his role as chief financial officer. Margaret de Luna, current president of the company’s consumer business, who will assume the role of president and chief operating officer.
“The company is in a better place since Dave took over and we thank him for his contributions and efforts,” said company founder and director Jim Cramer in a statement. “I have full confidence in Eric and Margaret’s ability to manage the consumer business on a standalone basis, and I look forward to continuing to build upon our recent success while the board explores strategic opportunities for the company.”
In the past two years, Callaway has overhauled its operations, laying off staff and selling one subsidiary, RateWatch, for $33.5 million. He has also focused more on putting some of its content behind a paywall to boost revenue, and added personal finance coverage.
The company reported a net profit in 2017, the first time since before the financial crisis.