J2 Global to spin eFax services business as new company called Consensus focused on healthcare
J2 Global, a conglomerate of media and information services, Monday said it will split into two businesses, spinning off its Internet fax business to investors in a tax-free transaction as a new company, Consensus, while the bulk of the company, in media and e-commerce, will remain J2.
The spin is expected to take affect by the third quarter of this year.
J2 Global shares were briefly halted in late trading, and rose 3% upon resumption of trading.
J2’s CEO, Vivek Shah, said the split “will create two leading independent public companies,” adding that, “With distinct management teams, capital structures, and strategic focus, each company should be very well positioned to create enduring value.”
Consensus will be run by J2’s CFO, Scott Turicchi, whom Shah referred to as “my long-term partner at J2.”
J2, which owns the brands Mashable, IGN, Ookla, among others, and which is part of the Ziff Davis media family, “will continue its strategy of building a leading internet platform focused on key verticals, including technology & gaming, shopping, health, cybersecurity and SMB,” the company said. That business is worth about $1.3 billion in annual revenue.
Consensus will consist of the smaller Cloud Fax business, including the eFax business, and related brands, with a focus on healthcare, which is expected to have $333 million to $342 million in revenue this year. Said J2,
Consensus intends to leverage its position as a leading provider of secure data exchange, focused primarily on the healthcare sector, to create an end-to-end solution addressing healthcare interoperability. The business will primarily comprise the Cloud Fax business that is currently part of the Cloud Services division of the company. The Cloud Fax business that Consensus will own is embedded in the healthcare ecosystem and is well positioned to capitalize on the large and growing market opportunity to provide interoperability among disparate systems and workflows, thereby increasing worker productivity, reducing costs, and delivering better patient care.
Investors will receive 80.1% of the shares of Consensus, while J2 will retain the rest.