Yellow Pages Group said Wednesday that it has agreed to buy the assets of Volt Information Sciences, Inc.'s directory systems and services as well as its directory publishing operations for a net purchase price of US$178 million in cash.
Volt, which has been a partner to Yellow Pages Group for the last 17 years, provides systems and services for the production and management of databases as well as the digitization of display advertisements for directory and other media publishers. Volt's directory and publishing operations reported an EBITDA before allocation of corporate expenses of US$19 million for last fiscal year ended October, 2007.
The deal, which is expected to close in September, does not include Volt's operations in Uruguay.
Yellow Pages Group, which publishes more than 340 Yellow Pages and residential directories annually, said it expects the acquisition to be immediately accretive to its distributable cash per unit.
Yellow Pages Income Fund indirectly holds an about 98% ownership interest in Yellow Pages Group and Trader Corp.
Yellow Pages Income Fund shares are currently trading at C$8.95, down C$0.12 or 1.32%.
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