Bahrain-based investment firm Investcorp will sell SourceMedia to newly formed Observer Capital. Terms of the transaction were not disclosed.
Investcorp declined to comment on the deal.
Investcorp created SourceMedia in a carve out transaction from Thomson Corporation in 2004. That deal included an affiliate company – Accuity which was sold to Reed Elsevier in September 2011.
SourceMedia offers several well-known trade publications including American Banker and the Bond Buyer.
This is the ninth exit for Investcorp for the fiscal year ending June 30, 2014 – companies in that group include German insulation materials company Armacell, and Skrill Group an online payments business. The firm returned approximately $1.3 billion to investors over the same period and posted a 25 percent increase in net profit according to a recent earnings statement.
Observer Capital is a newly launched, New York-based private equity firm founded by Joseph Meyer who is also the CEO of Observer Media, a group of publications including the New York Observer newspaper. Observer Capital focuses on private equity and special situation opportunities across the media, finance, and business services industries.