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J2 Global Inc. will split into two publicly traded companies as it separates its network of media sites from its cloud business, it announced Monday.
Under the J2 Global
JCOM,
name will be its media properties, including gaming site IGN; tech, science and culture media site Mashable; deals website Offers.com; media site BabyCenter; and more. The spinoff of the company’s secure data-exchange provider, focused primarily on health care, will be called Consensus.
“Today marks an important milestone that underscores the value we are creating in our Cloud Fax business,” said Scott Turicchi, J2’s current president and chief financial officer, said in a statement. He will become chief executive of Consensus. “In recent years, we have seen an acceleration in growth and opportunity for our secure data-exchange business, which is now positioned to be a leader in the race to address health-care interoperability.”
Vivek Shah will continue as CEO of J2 Global. “With distinct management teams, capital structures, and strategic focus, each company should be very well positioned to create enduring value,” he said.
The move, expected to be completed in the third quarter after board approval and customary closing conditions, spins off 80.1% of the outstanding shares of Consensus common stock to J2 shareholders, according to a news release. J2 said it plans to keep up to a 19.9% interest in Consensus and divest it over time.
Los Angeles-based J2 is expected to have revenue of $1.297 billion to $1.334 billion in 2021, while Consensus’ expected revenue is $333 million $342 million, per previous guidance.
Shares of J2, which have risen 31% so far this year and are up nearly 72% in the past 52 weeks, were up more than 3% in after-hours trading. They closed the regular session up less than 1% at $128.03.
