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Magicalia.com sold to Exponent Private Equity LLP

Fusion Corporate Partners are pleased to announce the sale of Magicalia Ltd (www.magicalia.com) the UK’s leading digital consumer publisher to media buyout specialists Exponent Private Equity LLP in a deal worth £13M.

Magicalia is the UK’s leading broad based consumer community internet publisher. It owns a growing cluster of over a dozen websites, including the leading UK online community sites www.BIKEmagic.com, FISHINGmagic.com, www.GOLFmagic.com, www.OUTDOORSmagic.com, www.RoadCyclingUK.com and www.AVReview.com all in special interest verticals.

Magicalia has developed two proprietary technology platforms: Magicalia Publishing Service (MPS),a highly scaleable platform to launch new owned websites; and Magicalia Commerce Service (MCS) an equally scaleable and commercial e-commerce web platform used to power 19 retail sites for clients in common vertical consumer markets. In total the company currently runs 40 websites.

This combination of online publishing expertise and technology platform made Magicalia a highly sought after company. Magicalia was originally funded in 1999 by Atlas Ventures and two high profile business angels, with Matrix Private Equity and other shareholders participating in a second round of funding in 2001.

All shareholders have made a full exit, however managers Jeremy Tapp and Adam Laird have been retained by Exponent in their new vehicle to continue Magicalia’s insurgent activities in the UK Consumer publishing market. With traditional publishers continuing to see both advertising revenue and circulation declines, Magicalia as the leading online player is well placed to capitalise over the next period. In its last trading period to December 2005, Magicalia Ltd produced revenues of c.£1.6M.

The Exponent team commented, “This is a strategic investment, and the first of a series of acquisitions we plan to make in order to create a larger group including both online and traditional publishing groups and titles.”

Adam Laird, joint managing director, Magicalia, said, “We are very pleased to have completed this deal and are looking forward to the challenge of developing the company further and building a larger group which will enable us to maximise the potential of the business.”

Fusion acted exclusively for the vendors, the shareholders of Magicalia Ltd. The partner responsible for this transaction was Paul Slight pslight@fusioncorp.co.uk

Testimonials for Fusion from Atlas and Matrix:

Rest assured we will be covering the team and yourself with much praise and rapture… your role as adviser has been very important and you have done a professional and excellent job throughout. Would be delighted to work with you again in the future” Ashley Broomberg, Matrix

Well done Paul. Professional and seamless process. We will certainly use you again if something relevant comes up” – Sonali de Rycker, Atlas

Published:

Paul Slight

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