Bertram Capital Look For Author Solutions Buyer

Publishing services giant Author Solutions is reported this morning in PW to be looking for a new buyer. Currently Bertram Capital have a majority share in the company that owns iUniverse, Xlibris, Wordclay, AuthorHouse and Trafford, as well as operating a number of self-publishing imprints for traditional publishers. Writing in today’s PW, Jim Milliot suggests ASI might be a good investment for industry players like Amazon or Ingram.

Coming off of a year with sales of $99.8 million and net income of $4.2 million, representatives for Author Solutions Inc. are looking for a buyer for the self-publishing giant. According to the offering memorandum, majority owner Bertram Capital, which made its first investment in ASI in 2007, is interesting in “pursuing a liquidity event as part of the normal investment cycle.”
ASI’s projections for future growth could entice a new buyer–be it another equity firm or an industry player (Amazon, Ingram?)–with sales in 2015 forecast to hit $179.6 million and net income to jump to $19.2 million. For 2012, ASI sees sales rising to $110 million and net income increasing to $7.0 million. In 2011, sales rose 13% over 2010 and the company posted its first profitable year. Since 2008, sales rose from $41.5 million with adjusted EBITDA increasing from a loss of $7.4 million to positive EBITDA of $12.2 million in 2011. ASI sees growth coming from continued expansion in the domestic self-publishing market, international expansion and leveraging its expertise into “other content forms.”
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