Investcorp, a global provider and manager of alternative investment products, has announced that it has completed the sale of SourceMedia to Observer Capital. Terms of the transaction were not disclosed.

Investcorp originally acquired SourceMedia, inclusive of its Accuity affiliate, from the Thomson Corporation in 2004. Through Investcorp's stewardship, SourceMedia made significant investments and changes to the business that advanced its digital-first strategy, significantly diversifying its revenue mix to incorporate digital media, marketing services, events and new categories such as research.

In addition, Investcorp spun out Accuity and worked with its management to position the business as the leading US provider of payment efficiency and risk reduction solutions for global financial institutions. Investcorp sold Accuity to Reed Elsevier in September 2011.

Mohammed Al-Shroogi, president for Gulf Business at Investcorp, said: “We are pleased to have collaborated with SourceMedia’s talented management team to make strategic investments that broadened the company’s revenue sources and positioned it for continued success with Observer Capital. The sale of SourceMedia demonstrates Investcorp’s ability to add value to its portfolio companies across all economic cycles.”

The sale of SourceMedia follows a highly active year for Investcorp’s corporate investment group, which deployed $609 million across five acquisitions in the fiscal year ending June 30.

In the same period, Investcorp executed eight corporate investment realizations, in an effort to support continued growth of the business and uphold the firm’s commitment to delivering value to clients and shareholders. The firm returned approximately $1.3 billion in proceeds from realizations and distributions during the fiscal year.

“SourceMedia’s partnership with Investcorp has been highly successful,” said Doug Manoni, CEO, SourceMedia. “Through our collective efforts, we were able to develop and implement a highly-successful digital strategy and evolved our business to a digital-first publishing, marketing solutions, and performance-based marketing company.”