Acquisition adds appeal

Article Excerpt

CYBERPLEX $0.60 (Toronto symbol CX; SI Rating: Speculative) (416-597-8889; www.cyberplex.com; Shares outstanding: 68.5 million; Market cap: $41.1 million) is buying privately held Tsavo Media for $75 million U.S. Tsavo has more than 300 web sites that offer consumer information in five categories: health & wellness, technology, lifestyle, education and finance. In all, its sites attract more than 30 million visitors each month. Tsavo was profitable in 2009, and had revenue of about $110 million. Cyberplex’s 2009 revenue was $110.4 million, so adding Tsavo will double its annual revenue. The purchase should be a good fit for Cyberplex. That’s because Cyberplex sells a service that links advertisers’ online marketing campaigns with its affiliates, which include web-site operators (like Tsavo), bloggers and email marketers. Cyberplex operates in a complex and ever changing market. Still, the company should continue to benefit as the economy recovers and consumer spending rises. Cyberplex will need to successfully integrate Tsavo, but the acquisition adds appeal. Cyberplex is still a buy, but…