By Christo Volschenk
Finland’s Alma Media Corporation acquired LMC, the company behind job portals Jobs.cz and Prace.cz in the Czech Republic and Topjobs.sk in Slovakia, for €34.4 million ($46 million U.S.) in cash. The transaction, which brings another big classifieds player into the already crowded eastern-European market, will go into effect on Jan. 2, 2012.
In addition to the amount paid in cash, Alma Media will fork out an earn-outpayment (based on LMC’s financial performance in 2012) of not more than €3.9 million.

Alma Media joins a few big names already active in the region. For instance, Ringier Axel Springer, a joint venture of two Swiss and German media giants, which operates in Poland, Slovakia, the Czech Republic and Serbia. (In Poland it operates the job portals Stepstone.pl and Praca.info.) Ringier Axel Springer will launch a new digital expansion strategy on Jan. 1, 2012 (here and here).

South African-based media group Naspers also has its eyes on Eastern Europe, where it operates successfully with the subsidiary Allegro.

The acquisition of LMC is in line with Alma Media´s strategy to seek growth from digital services and to internationalize its operations, the company said. Alma Media expects LMC’s 2011 revenue to grow by about 25 percent to €16.5 million, with an EBITDA of about €4.6 million. LMC will sort under Alma Media´s division Marketplaces.
LMC was established in 1996 by Libor Malý, who is now also the seller. Since 1996 the company has been a market leader in the Czech market. It has about 25,000 registered B-2-B customers and one million registered job seekers. It employs 200 people mainly in Prague. The acquisition will have no effect on LMC´s employees or the brand names, Alma Media said.
“With the transaction we take a major step in the direction of internationalizing our online recruitment segment. I am very glad that LMC´s talented team will join Alma Media. I firmly believe the know-how of LMC, combined with Alma Media´s strong experience in online services, also in the field of recruitment, will bring great opportunities to further develop our services,” said Raimo Mäkilä, Senior Vice President of Alma Media´s Marketplaces division.