D&B Acquires First Research

D&B today announced that it has acquired First Research for $22.5 million, with an earn-out potential of up to $4 million based on financial performance. The acquisition is being funded with cash on hand.

First Research, based in Raleigh, North Carolina, is the leading Internet provider of editorial-based industry insight, specifically tailored toward sales professionals. Through this acquisition, D&B is able to enhance its Hoover’s offering with deeper industry-specific content, providing sales professionals with higher quality data and more comprehensive insight.

"Our acquisition of First Research is another step in executing against our strategic growth plan for the future," said Steve Alesio, D&B’s chairman and CEO. "The acquisition supports our Internet strategy of growing Hoover’s by better meeting the need for commercial insight among sales professionals. In addition, it supports our commitment to delivering profitable revenue growth over time."

First Research generated 2006 revenue of $6.5 million, which represented 29% growth over the prior year. Due to purchase accounting rules, and specifically the treatment of deferred revenue, D&B does not expect the First Research acquisition to have a material impact on its 2007 revenue performance. First Research is expected to be $0.04 dilutive to earnings in 2007, neutral to earnings in 2008, and accretive in 2009. D&B confirmed that the acquisition will not have an impact on its 2007 financial guidance.