j2 Global Completes Two Acquisitions in Q3 2017; Announces Two Additional Divestitures; Updates 2017 Guidance
October 12 2017 - 7:59AM
Business Wire
j2 Global, Inc. (NASDAQ: JCOM), the global provider of Internet
services and digital media, announced today that the Company
completed two acquisitions in the third quarter of 2017, spanning
two business units and two countries.
The acquisitions listed below grow the Company’s global customer
base, provide access to new markets and expand j2’s product lineup.
The acquisitions include:
backupsonline
Cloud – Backup (The Netherlands) StreamSend Cloud –
Email Marketing (USA)
Terms of the individual acquisitions were not disclosed, and the
financial impact to j2 is not expected to be material with respect
to those acquisitions.
As previously announced, j2 sold Cambridge BioMarketing LLC, a
subsidiary of Everyday Health, Inc. In addition, j2 announced that
it has sold Web24, its Australian hosting business, and Tea Leaves
Health, LLC, a subsidiary of Everyday Health, Inc.
In light of the three divestitures described above, which reduce
the Company’s revenue by approximately $23 million in the second
half of the year, j2 announced that it is adjusting its revenue
guidance for fiscal year 2017 as follows: for fiscal 2017, j2
estimates that it will achieve revenues between $1.107 billion and
$1.147 billion. j2 reaffirms its Adjusted non-GAAP earnings per
diluted share of between $5.60 and $6.00.
Adjusted non-GAAP earnings per diluted share for 2017 excludes
share-based compensation of between $21 million and $23 million,
amortization of acquired intangibles and the impact of any
currently unanticipated items, in each case net of tax. The
increase in share-based compensation is due to the recent
announcement of Hemi Zucker’s retirement from j2 and the expected
acceleration of equity related thereto.
It is anticipated that the non-GAAP effective tax rate for 2017
(exclusive of the release of reserves for uncertain tax positions)
will be between 28.5% and 30.5%.
The Company has not reconciled the Adjusted non-GAAP earnings
per diluted share and tax rate guidance included in this release to
the most directly comparable GAAP measure because this cannot be
done without unreasonable effort due to the variability with
respect to costs related to acquisitions and taxation, which are
potential adjustments to future earnings. We expect the variability
of these items to have a potentially unpredictable and significant
impact on our future GAAP financial results.
About j2 Global
j2 Global, Inc. (NASDAQ: JCOM) provides Internet services
through two segments: Business Cloud Services and Digital Media.
The Business Cloud Services segment offers Internet fax, virtual
phone, unified communications, hosted email, email marketing,
online backup and CRM solutions. It markets its services
principally under the brand names eFax®, eVoice®, Onebox®,
FuseMail®, Campaigner®, KeepItSafe®, Livedrive® and LiveVault®, and
operates a messaging network spanning 50 countries on six
continents. The Digital Media segment offers technology, gaming,
lifestyle and healthcare content through its digital properties,
which include PCMag, IGN, AskMen, Speedtest, Offers, ExtremeTech,
Geek, Toolbox, Techbargains, emedia, Salesify, Everyday Health and
others. As of December 31, 2016, j2 had achieved 21 consecutive
fiscal years of revenue growth. For more information about j2,
please visit www.j2global.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20171012005480/en/
j2 Global, Inc.Laura Hinson, 800-577-1790
j2 Global (NASDAQ:JCOM)
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