CUC International Inc. said Thursday it will buy France’s Hebdo Mag International Inc. for stock valued at $440 million as the direct-marketing company builds its Internet commerce business.
CUC expects the purchase of the closely held publisher and classified advertising distributor to add to earnings this year. It will issue about 17 million shares when the transaction is completed, CUC spokeswoman Laura Hamilton said.
The purchase expands CUC’s classified-advertising base and allows it to lure customers to its Internet services, analysts said.
The purchase is the latest in a string of CUC acquisitions, designed to bolster the company’s effort to use the Internet to sell goods and services to members of its discount clubs.
In May, CUC agreed to merge with HFS Inc. in a $11.4 billion stock swap, following its $1.9 billion purchase of software makers Davidson & Associates Inc. and Sierra On-Line Inc. last year.
Paris-based Hebdo Mag has more than 150 titles of classified ad “shoppers” in 12 countries. Founders Louise and John MacBain own 50 percent of the voting stock and 92.6 percent of the nonvoting stock.
