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Bloomberg Buys BNA at Three Times Revs

Financial media giant Bloomberg is buying one of the stalwart plaBNA logoyers in the tax and accounting field, the Bureau of National Affairs, for $990 million, three times the $331 million the target company reported for revenue for the year ended December 31. BNA will operate as a standalone unit once the deal closes this year.

The amount is less than the more than $1 billion BNA shareholders reportedly rejected over a decade ago from Thomson.

 

Bloomberg did not issue a detailed statement about why it entered this market. But it places that company in head-to-head competition with Thomson in another area. Thomson Reuter's Markets division competes with Bloomberg and Thomson CEO Tom Glocer recently sacked the head of that group and took over day-to-day operation. The company has reportedly lost ground to Bloomberg and the Thomson family was not happy with Markets game plan.

BNA is privately held, but because it is employee-owned, it is required to report financial results to the SEC given the number of shareholders.

While BNA stayed profitable during the recession, its 2010 numbers are down from fiscal 2007 when it reported $352.2 million in revenue. Its fiscal 2010 earnings were $27.6 million, sharply off the slightly more than $88 million in net income for 2007, its peak year.

One area harmed by the recession was BNA Subsidiaries, which included the IOMA and Kennedy Information operations. BNA placed the unit in Chapter 11 in September and the reorganization plan was confirmed on March 22. BNA, which wrote off $17.8 million in impaired goodwill last year, acquired the subsidiary's assets and placed them in a new unit called Kennedy Information.

Bob Scott
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards.  Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He  has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that.  A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind
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