SuperMedia and Dex One completed their merger today, creating Dex Media, a company with annual revenues of approximately $2.6 billion (based on combined 2012 revenues), with about $500 million in digital revenue. The combined company also has 2,700 sales reps and roughly 665,000 advertisers.
The combined company is the second largest directory publisher in the United States, following YP Holdings, which according to BIA/Kelsey estimates had roughly $2.8 billion in 2012 revenue.
The new company is being led by CEO Peter McDonald, who was CEO of SuperMedia and was previously president of Dex.
“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,” McDonald said in a statement announcing the merger’s completion.
By joining forces, SuperMedia and Dex One will have more time to effect a successful business transformation than they would have as separate companies. The combined company will be stronger and better able to weather the storms on the changing local media landscape. The combined company will be both a tougher competitor and arguably more attractive strategic partner based on its expanded footprint and enhanced financial stability.
The merger’s approval coincides with the two companies’ emergence from pre-packaged Chapter 11 bankruptcies. A judge at the U.S. District Court in Delaware approved the two companies’ reorganization plans yesterday, paving the way to finalize the deal.
While the companies are formally merged, much work remains to combine the two organizations and realize the $150 million to $175 million in annual cost synergies the deal is expected to produce.