PlanetOut Inc. Agrees to Acquire RSVP Vacations
January 23 2006 - 5:35PM
PR Newswire (US)
Leverages Reach of PlanetOut Media Properties to Fuel Business
Growth Into Significant Gay and Lesbian Travel Market SAN
FRANCISCO, Jan. 23 /PRNewswire-FirstCall/ -- PlanetOut Inc.
(NASDAQ:LGBT), the leading media and entertainment company
exclusively serving the lesbian, gay, bisexual and transgender
(LGBT) community, today announced that it has signed a definitive
agreement to acquire substantially all of the assets of RSVP
Productions, Inc. (RSVP), a leading marketer of gay and lesbian
travel events, for $6.5 million in cash plus up to $3.0 million in
additional consideration based on achievement of certain financial
performance targets for 2007 and 2008. PlanetOut will extend a
bridge loan of up to $1.4 million to RSVP, which will be repaid
upon closing, and will also reimburse RSVP for approximately
$300,000 of expenses at closing. PlanetOut expects to close this
transaction in March 2006, subject to the satisfaction of
regulatory and business requirements, and expects it to be
immediately accretive. RSVP, a privately held company based in
Minneapolis with 12 employees, posted $7.2 million in revenue in
2004 and $8.3 million in revenue for the first nine months of 2005.
The company is among the world's largest and most respected gay and
lesbian tour operators and marketers offering distinctive travel
packages, including big and small ship cruises, riverboat cruises,
land tours and resort vacations geared toward a gay and lesbian
audience. A pioneer in the travel industry since 1985, RSVP has
hosted more than 80,000 guests from all over the world. This
acquisition substantially increases PlanetOut's position in the $65
billion gay and lesbian travel market*, as estimated by research
firm Community Marketing, Inc. RSVP joins PlanetOut and its
established audience of LGBT travelers served by PlanetOut's
award-winning travel content, including dedicated travel channels
on its flagship Web sites Gay.com and PlanetOut.com, as well as the
travel magazine, The OUT Traveler. "The acquisition of RSVP, a
strong, versatile and trusted LGBT travel brand, will advance our
strategy of building a diversified media, entertainment and
lifestyle company by offering our online and print audience a suite
of compelling products and services," said Jeff Soukup, executive
vice president and chief operating officer, PlanetOut Inc. "RSVP is
an excellent strategic fit for PlanetOut, giving us an additional
platform to serve the varied needs of the LGBT community. RSVP
further bolsters our competitive position with a growing family of
trusted brands that address the desire of our core audience to
connect with one another, to be enriched by rewarding experiences
and to build community. The acquisition leverages our existing
travel media assets, established LGBT audience, customer lists and
capital resources to fuel RSVP's growth." PlanetOut Inc. property
Gay.com is the number one site for reaching single men who take
cruise vacations and earn more than $150,000 per year, according to
media research firm @Plan (Spring 2005). Moreover, according to
@Plan (Spring 2005), Gay.com members are six times more likely to
travel and 10 times more likely to go on a cruise than the average
Internet user. PlanetOut Inc. magazine properties The Advocate, OUT
and Out Traveler in combination index 2.5 times the average for
people who take foreign cruises, 3.5 times the average for people
who take more than nine domestic trips per year and 6.3 times the
average for people who take more than nine foreign trips per year,
according to The Advocate/OUT 2005 MRI Custom Study (Index: Spring
2004 U.S. Adults). "Access to PlanetOut Inc.'s powerful demographic
through what we believe to be the world's largest audience of gays
and lesbians anywhere creates opportunities for RSVP to offer even
more people in our worldwide community the chance to experience the
best vacation of their lives, with more options, more destinations
and an expanded schedule of RSVP tours, cruises and events as a
part of PlanetOut," said Paul Figlmiller, president, RSVP. "Among
these opportunities are tours, where both gays and lesbians, as
well as their families and friends, can come together for
life-enriching travel adventures." PlanetOut plans to report its
fourth-quarter fiscal 2005 financial results on Feb. 14, 2006, and
expects to provide its business outlook for the first quarter,
including the estimated financial impact of the RSVP acquisition.
PlanetOut expects to close the transaction late in the first
quarter of 2006. As a result, PlanetOut will reflect the
post-closing portion of RSVP's 2006 financial performance on its
2006 financial statements. About RSVP Productions, Inc. Established
in 1985, RSVP was the originator of the gay and lesbian cruise
concept, and offers distinctive travel packages designed for gay
and lesbian travelers. More than 80,000 men and women have
participated in RSVP's big and small ship cruises, riverboat
cruises, land tours, and resort vacations. Destinations in 2006
include the Caribbean, Central America, the Czech Republic,
Austria, Hungary, Ireland, Mexico, French Polynesia, Peru and
Thailand. RSVP is headquartered in Minneapolis and is marketed
through travel agencies dedicated to the gay and lesbian community
as well as through direct sales. For more information, please visit
http://www.rsvpvacations.com/. About PlanetOut Inc. PlanetOut Inc.
is the leading global media and entertainment company exclusively
serving the lesbian, gay, bisexual and transgender (LGBT)
community. PlanetOut's brands include Gay.com, PlanetOut.com,
Kleptomaniac.com, and OUT&ABOUT Travel, as well as localized
versions of the Gay.com site, in English, French, German, Italian,
Portuguese and Spanish. PlanetOut brands also include The Advocate
(http://www.advocate.com/); Out (http://www.out.com/); The Out
Traveler (http://www.outtraveler.com/); and, HIVPlus
(http://www.hivplusmag.com/), as well as other publishing, direct
marketing and e-commerce properties, including Alyson Publications,
SpecPub, Inc. and Triangle Marketing Services. PlanetOut, based in
San Francisco with additional offices in New York, Los Angeles,
London and Buenos Aires, offers FORTUNE 1000 and Global 500
advertisers access to what it believes to be the most extensive
network of gay and lesbian people in the world. For more
information, please visit http://www.planetoutinc.com/.
Forward-Looking Statements In addition to the historical
information contained herein, this press release contains
forward-looking statements, including the impact of PlanetOut's
acquisition of RSVP, as well as statements containing the words
"believes," "anticipates," "expects," and similar words. Such
forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the company to differ materially
from any future results, performance or achievements expressed or
implied by such forward-looking statements. Such factors include,
among others, the company's limited operating history and
variability of operating results; the company's ability to attract
and retain subscribers and advertisers; the company's ability to
integrate the acquired assets of RSVP; competition; timing of
product launches; and the company's dependence on technology
infrastructure and the Internet. Additional information concerning
factors that could affect PlanetOut's future business and financial
results is included in the company's Annual Report on Form 10-K for
the year ended December 31, 2004 and other public filings filed
from time to time with the Securities and Exchange Commission
(SEC), which are available at the SEC's website at
http://www.sec.gov/. * Community Marketing, Inc. extrapolated five
percent (based on the national population figures) of the annual
$1.3 trillion U.S. travel industry as stated by the Travel Industry
Association of America. DATASOURCE: PlanetOut Inc. CONTACT: Media
Relations, James David of PlanetOut Inc., +1-415-834-6479, or ; or
Investor Relations, Peter Denardo of Demer IR, +1-415-834-6340, or
, for PlanetOut Inc. Web site: http://www.planetoutinc.com/
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