Monster goes military

Monster Worldwide, Inc. (NASDAQ: MNST), the parent company of the online careers property, Monster, has announced a strategic acquisition designed to accelerate Monsterís growth in the interactive market. To help further enhance Monsterís U.S. public sector initiatives, the company has acquired Military Advantage, Inc., operator of Military.com, the nationís largest online military destination with over 3 million members.
Military Advantage targets the 30 million Americans with military affinity to offer career services, educational opportunities, VA benefits resources and a host of other advantages earned through military service. The company provides corporate and government clients with efficient access to a market comprising one of the largest in consumer purchasing power.

Joining forces with Monster Worldwide enables us to expand offerings for military personnel, veterans and those considering a military career, said Christopher Michel, founder and president of Military Advantage. We look forward to realizing synergies with Monster.com and TMP Worldwide Advertising & Communications along with Monster Government Solutions and other Monster Worldwide products.
Military Advantage and Monster will offer employers access to veteran jobseekers, an elusive talent pool with technical skills, security clearances, diversity and leadership experience. TMP Worldwide Advertising & Communications and Military Advantage will offer clients measurable affinity marketing programs as well as efficient recruiting and retention programs aimed at military personnel or veterans. Military Advantage, through TMP, currently delivers advertising campaigns for the Naval Reserve, the Air Force Reserve and the General Services Administration (GSA).

Acquiring this leading player in its online field enhances our reach, capabilities and footprint in a key growth area for our Monster division - the U.S. public sector, said Andrew J. McKelvey, chairman and chief executive officer of Monster Worldwide. This merger enables us to offer employers efficient access to veteran jobseekers, an elusive talent pool with skills that are applicable not only in the aerospace and defense industries, but many other sectors including healthcare, high tech, construction and government. In addition, we will be able to assist veterans in locating career opportunities and programs that value their unique status and experience.

Military Advantage is profitable and generated revenues of $7.5 million in 2003. Monster Worldwide anticipates that the acquisition will be accretive in 2004 and beyond. The consideration for the transaction was approximately $39.5 million in cash with approximately $24.5 million payable at closing and the balance payable over the next two years.