Individual swapped 1.5 million shares for employee-owned ClariNet, putting the purchase price at about $7.6 million. Individual shares traded unchanged at 5-1/8 this morning. The transaction is expected to close next week.
ClariNet, with annual revenues of about $3.9 million, says it has more than 1.5 million subscribers and provides more than 3,500 stories per day, with updates every ten minutes. All of its 40 employees will become Individual staff.
The acquisitions followed Individual's decision to close FreeLoader, an offline browser service, on May 28 after failing to attract a buyer or outside investor.
Individual also unveiled an upgrade of its personalized news service, NewsPage, incorporating new capabilities from both ClariNet and CompanyLink.
The upgrade adds breaking news by business topic, plus a reference service for company and industry research.
Individual's services now include First, NewsPage, Heads Up, Hoover, and ClariNews, whose subscribers will have uninterrupted service. Combined circulation for the services is more than 2 million, including those who receive one of the services through 350 ISPs and corporations.