The Economist Group agrees to acquire Congressional Quarterly

New CQ-Roll Call Group offers unparalleled insight into the working of US Congress 

The Economist Group today announced it has agreed to acquire Congressional Quarterly, Inc (CQ) from the Times Publishing Company.  The new CQ-Roll Call Group will comprise Roll Call, the leading newspaper for Capitol Hill, GalleryWatch, a legislation-tracking service that The Economist Group acquired in 2006 and Capitol Advantage, a grassroots mobilisation service acquired in 2008 and the newly-acquired CQ.

In June, The Economist Group reported record earnings for the year ended March 31st, with operating profit up 26% on revenues up 17%. These results were driven by continued circulation growth of The Economist to record levels, strong advertising in The Economist and the success of the Group’s other businesses including the wholly-owned Roll Call Group based in Washington, DC.

“Adding CQ to our portfolio means that we will be able to offer comprehensive information and analysis to customers,” said Andrew Rashbass, chief executive officer of The Economist Group. “CQ is famous for its unbiased, authoritative journalism. Roll Call’s journalistic excellence is equally well known, as is the sophistication of the other information services in the Roll Call Group. I am delighted that CQ is joining The Economist Group. The new CQ-Roll Call Group will be the leader in delivering insight and analysis about the workings of Congress.”

The two companies each have a long, rich and distinctive history covering Congress. Since 1945, CQ has been the “publication of record” providing a factual, unbiased account of congressional activity. In recent years, CQ has been at the forefront of developing internet services that provide real-time intelligence on the workings of Congress.

Roll Call, founded in 1955, is at the centre of the Capitol Hill community, covering the people, politics and personalities that drive the legislative process. This focus on community has led to expansion into trade-association-based grassroots mobilisation with the acquisition of Capitol Advantage in 2008.

The acquisition will be funded with cash and the issue of long-term private placement Notes. Structured as a committed acquisition facility, the Notes will be purchased by Pricoa ^[1] Capital Group under a bilateral agreement. The Economist Group welcomes Pricoa Capital Group as a new relationship capital provider via this one-step transaction.

Both companies have approved the transaction, which is subject to customary closing conditions and is expected to close in the third quarter of 2009.

1. Pricoa is a brand name used by Prudential Financial, Inc, which is headquartered in the United States. It is not affiliated in any manner with Prudential plc of the UK.

(July 21st 2009)