BURLINGTON, WI, June 16, 2009 - Cannella Response Television (“Cannella”), a leading direct response television media service company, today announced that affiliates of two established investors in media - ZM Capital and Palladium Equity Partners - have made a significant investment in the company that will allow it to expand its current offering of media products to major direct response television advertisers. In addition, Veronis Suhler Stevenson will provide mezzanine debt financing along with an equity co-investment in the transaction through its recently formed VSS Structured Capital II fund. Terms of the transaction were not disclosed.
The investments by ZM Capital and Palladium Equity Partners will enable Cannella to accelerate its growth by investing in both new acquisitions and in the development of new services and media offerings that meet the evolving needs of its growing client base. Cannella will continue to be managed by its current management team, led by Founder and Executive Director Frank Cannella and CEO Robert Medved.
Cannella’s services create a number of verifiable advantages for direct response television advertisers resulting in more efficient media buys and greater return on investment than generated via traditional agency models. As advertisers continue to demand more accountability and as advertising models shift from CPM models to ROI models, Cannella stands to benefit. By aggregating inventory across multiple media platforms and employing proprietary technology like its MediaStar™ software, custom research and comprehensive analytics, Cannella enables direct response television advertisers to benefit from the scale of an organization focused specifically on new, creative, and cost-effective ways to bring together direct response advertisers and consumers.
“ZM Capital and Palladium Equity Partners each bring tremendous expertise and capital resources to the company as we expand our client relationships and bring new and exciting media opportunities to the direct response television market,” said Frank Cannella, Founder and Executive Director. “We have created a powerful collaboration for the benefit of our customers, investors, and employees.”
“We are delighted to work with ZM Capital and Palladium Equity Partners at such an exciting time in our company’s history,” said Robert Medved, CEO of Cannella. “Our business model and expertise are uniquely relevant to today’s marketers as they face the critical challenge of developing more interactive relationships with consumers.”
Cannella Response Television was advised on the transaction by a team from investment banking firm Petsky Prunier, led by Sanjay Chadda.
About Cannella Response Television
Cannella Response Television (www.drtv.com), formed in 1985, specializes in television direct response media placement on national cable networks and broadcast stations, with in-depth results analysis on its proprietary Media Star™ software. The company places media for many of the industry’s biggest hits and often supplements media to other agencies. Cannella is unique in that it goes beyond the typical media placement services by adding value through a broad range of consulting services – all at no additional fee to its clients. Cannella works with clients as a project manager to guide them through the infomercial process, lending expertise to such areas as product assessment, script analysis, rough-cut evaluation, telemarketing scripting and fulfillment recommendations. Cannella Response Television is based in Burlington, Wisconsin with regional offices in Los Angeles and New York.
About ZM Capital
ZM Capital is the private equity investment fund of ZelnickMedia. The fund invests in media companies in which the partnership’s capital resources, industry relationships and operational experience can meaningfully enhance growth and value. ZelnickMedia has extensive experience investing in and operating companies in direct response television, direct marketing, marketing services, business information, interactive entertainment, and recorded music. Past investment in direct response television and television media services include Time Life and ITN Networks.
About Palladium Equity Partners
Palladium Equity Partners and its affiliates (“Palladium”) advise funds targeting investments in media companies as well as in financial and business services, consumer/retail, food/restaurants, healthcare, and manufacturing businesses. Palladium has a focus on companies that are well-positioned to capitalize on the fast-growing U.S. Hispanic market. The principals of Palladium have directed investments of over $2.5 billion of equity in more than 65 portfolio companies over the last two decades.
About Veronis Suhler Stevenson (www.vss.com)
Veronis Suhler Stevenson (“VSS”), founded in 1981, is a leading private equity firm that makes buyout and mezzanine investments in the information, education and media industries in North America and Europe. The VSS Structured Capital funds are dedicated to providing non-control mezzanine capital to middle market companies in the VSS target industries to assist with strategic acquisitions, growth financings, recapitalizations, buyouts and other corporate and shareholder initiatives. VSS Structured Capital II commenced investing in 2009. To date, the six VSS equity and structured capital funds have invested in more than 63 platforms companies, which have in turn completed over 270 add-on acquisitions resulting in a portfolio with realized and unrealized enterprise value in excess of $14 billion.
About Petsky Prunier
Petsky Prunier (www.petskyprunier.com) is the leading investment bank serving the marketing services, interactive advertising, advertising & promotion, digital media, software & information, marketing technology and specialty media and out-of-home industries. The firm’s mergers and acquisitions and private placement advisory services reflect an uncommon blend of product specialization and industry expertise. This depth of knowledge, tailored approach to each engagement and the results achieved has earned Petsky Prunier a distinguished reputation among entrepreneurs, corporations and private equity firms.
For Cannella Response Television:
Braff Communications LLC
For ZM Capital:
For Palladium Equity Partners:
Kekst & Company
For Veronis Suhler Stevenson:
For Petsky Prunier:
Partner & Managing Director