BabyZone, one of the older parenting portals (formed10 years ago), has been bought by Canada-based children’s website Kaboose, for $22 million, and two million Kaboose warrants. In addition, BabyZone shareholders may get further payments if the U.S. company meets pre-determined operating targets this year and next.
BabyZone generated revenues of about $4.3 million last year (which could double this year) and has more than two million monthly users. The company generates revenue through online branded advertising, of which 95 per cent is from the U.S.
Also, Kaboose has also bought Two Peas, an online scrapbooking company for hobbyists, for $600,000 in cash and other benefits.
Kaboose is an online family media company based in Toronto, and lists its shares on the Toronto Stock Exchange under the symbol KAB. Some more details on the buyout here in the release.