Research This: Global Giant D&B Purchases First Research for $22.5M

Raleigh, N.C. — Dun & Bradstreet, one of the world’s largest business database companies with a market cap of more than $5 billion, has acquired Raleigh-based First Research in a deal worth $22.5 million in cash.

First Research, which is privately held, will become part of D&B’s business unit known as Hoover’s. Hoover’s provides reports and information about both private and public companies.

The deal could be worth as much as an additional $4 million for First Research shareholders, based on earnings performance.

Bobby Martin, chief executive officer and president of First Research, launched the company along with Ingo Winzer, the firm’s executive vice president of research, nine years ago. He formed the company and is the primary financial backer after having worked six years at Bank of America. Martin is a graduate of Appalachian State University.

First Research provides industry information over the Internet for sales professionals. Services include “call prep sheets,” e-mail alerts, state profiles and executive insight. Among its customers are nine of the world’s 10 top banks, including Bank of America and BB&T, according to the company. Overall First Research has 800 corporate users.

The company, which has 42 employees, generated $6.5 million in revenues in 2006, a 29 percent increase over 2005. All First research executives will remain with the firm.

D&B (NYSE: DNB) is based in Short Hills, N.J. It reported revenues of more than $1.5 billion in 2006.

“Our acquisition of First Research is another step in executing against our strategic growth plan for the future,” said Steve Alesio, D&B’s chairman and chief executive officer. “The acquisition supports our Internet strategy of growing Hoover’s by better meeting the need for commercial insight among sales professionals. In addition, it supports our commitment to delivering profitable revenue growth over time.”

D&B reported that the deal will have a four-cent-per-share impact on earnings in 2007, will be neutral to earnings in 2008 and be accretive in 2009. The company, which is 165 years old, has built a database that contains more than 110 million business records.