By: (AP) E.W. Scripps Co. on Thursday said it acquired uSwitch, a London-based free online comparison shopping service, for $366 million in cash.
The Cincinnati-based newspaper publisher and TV station owner said the purchase further expands its interactive media division.
The acquisition, which follows Scripps' purchase of comparison shopping service Shopzilla last June, is expected to lower earnings per share this year by about 10 cents to 15 cents, and lower profit in 2007, while boosting earnings after that.
On a long-term basis, Scripps said it expects uSwitch to generate 40 percent to 50 percent segment profit margins.
Analysts expect the company to earn $2.16 per share for 2006, and $2.46 per share for 2007, according to Thomson Financial.
Privately held uSwitch helps consumers compare prices for services including electricity, broadband, and credit cards, and switch their service provider online. The company, which generates most of its revenue from commissions paid by service providers, will continue to be guided by its current management.
Scripps said it will finance the deal by borrowing funds under its commercial paper program.
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