Business News

Dex One and SuperMedia Complete Merger, Move Forward Together as Dex Media

Wednesday 08. May 2013 - More Than 2,700 Marketing Consultants Advising 665,000 Local Businesses in the U.S.

Dex One Corporation and SuperMedia Inc. today announced the completion of their merger, creating Dex Media, Inc. — one of the largest national providers of social, local and mobile marketing solutions through direct relationships with local businesses. The common stock of Dex Media will begin trading May 1, 2013 on the NASDAQ stock exchange under the symbol: DXM.
Completion of the merger occurred simultaneously with each company’s emergence from Chapter 11 bankruptcy protection today. Each of Dex One Corporation’s and SuperMedia Inc.’s “pre-packaged” Plans of Reorganization became effective following confirmation of the plans by the United States Bankruptcy Court for the District of Delaware on April 29, 2013.
“Dex Media is positioned to help businesses across the country grow, with over 2,700 marketing consultants already advising approximately 665,000 local businesses across social, local and mobile media,” said Peter McDonald, president and CEO of Dex Media. “We intend to seize the opportunity to create additional value for existing and new clients, employees and investors. I want to recognize the outstanding performance of Dex One and SuperMedia employees over the past few years to transform the companies and make the merger and creation of Dex Media possible.”
“This combination establishes Dex Media as a powerful marketing services company with digital revenue approaching $500 million and a near national footprint,” said Alan Schultz, chairman of the board of directors of Dex Media. “The company plans to leverage its strong free cash flow generation, expense synergies and tax assets to build on its offline foundation to offer effective marketing solutions and reduce debt.”
Dex Media estimates it will realize approximately $150-$175 million of annual run rate cost synergies by 2015, and expects to preserve access to Dex One’s remaining tax attributes and generate future attributes, in aggregate totaling as much as $1.8 billion, to offset income attributable to the combined company following the completion of the transaction.
Under the terms of the agreement, legacy Dex One shareholders received 0.20 shares for each Dex One share they owned, and legacy SuperMedia shareholders received 0.4386 shares for each SuperMedia share they owned. Dex One shareholders now own approximately 60 percent and SuperMedia shareholders now own approximately 40 percent of Dex Media’s newly issued common stock.
While the corporate entity will be called Dex Media, the Dex One and SuperMedia brands, client-facing operations and communications will continue under the Dex One and SuperMedia brand names. Dex Media headquarters are in Dallas.