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Emap's life as a multimedia group finally drew to a close last week, with its break-up all but completed by the sale of its B2B publishing arm.

But the buyers of B2B publisher Emap Communications, a joint venture run by Guardian Media Group and private equity group Apax, plan to build a publishing group that could go some way to filling the void left by Emap's break-up.

Between them, GMG and Apax now own Emap Communications, publisher of titles such as Local Government Chronicle, and Incisive Media, which publishes dozens of titles, including Daily Business Review. GMG and Apax co-own Emap Communications, while Apax owns 100% of Incisive. In addition, GMG publishes numerous trade titles through its Guardian News & Media operation.

GMG and Apax could now go a step further in their bid to build up the B2B publishing sector.

GMG chief executive Carolyn McCall told Media Week that a merger of Emap's business-to-business assets with those of Apax-owned Incisive Media is being considered. However, there are no immediate plans to do so, despite speculation from the City that a combined offering is likely.

McCall says that a unified Emap/Incisive business is "a possible option", although the plan might be jettisoned following a full review of the two operations.

Debt issues
However, any merger is unlikely in the immediate future. The global credit crunch means Apax and GMG have been unable to negotiate a new debt package to facilitate the combining of the Emap and Incisive businesses.

McCall says: "We have taken the view to wait and see. I can see why analysts would see a merger as the rational option. But the credit markets do not lend themselves to this at the moment."

Her comments come as GMG and Apax get to grips with Emap's B2B arm. Informa chief David Gilbertson has been appointed to run the former Emap Communications business. Previous chief executive Derek Carter has left the business.

City analysts believe the private equity firm and GMG plan to strip out costs from the two B2B players and generate a quick return on their investment. The sharing of Emap's and Incisive's infrastructure, editorial resources and advertising sales operations, would be among those parts of the business earmarked for change, say analysts.

Simon Baker, media analyst at Credit Suisse, points to significant duplication across the two businesses, adding that the new owners could create value by sharing assets and "cross promoting" products.

McCall says a long-term strategy for the Emap Communications business will not be set out until chief executive Gilbertson has undertaken a full review of the business, which is likely to take three months.

"There will be different strategies for different sectors of the business. David will make his recommendations to the board and if he says (certain plans are) a good fit then we will do it," she says.

Observers are generally agreed that GMG and Apax, which also share ownership of Trader Media Group, will look to expand Emap Communications' digital and events businesses, at the possible expense of its printed B2B offerings.

Titles such as Nursing Times and Health Service Journal have suffered in recent years because of declining recruitment advertising, while Emap Communications has proved particularly strong in event management.

Paul Gooden, media analyst at ABN Amro, says: "Some titles that they may look to cut costs across are the public sector recruitment titles, such as Nursing Times."

Mature assets
Others, though, believe the Emap Communication business is well run and will require few changes.

Alex de Groot, media analyst at Panmure, says: "Emap's assets are well run across media, retail and the public sector. These are mature assets that do not need much changing. The jewel in the crown is fashion website WGSN, which has tremendous potential."

WGSN posted revenue growth of 20% in the year ending 30 September 2007 - Emap's last set of accounts - and is viewed as a stellar performer in the group. McCall says the WGSN business has "a lot of room to grow" and also picks out Emap events such as Cannes Lions as key areas of the business.

For GMG, the move into B2B - which tends to generate a mixed revenue stream of subscription, advertising and event income - will help balance its business portfolio. Big brands, such as Microsoft, spend around 30% of their UK advertising print spend on B2B publications. The move is also the latest part of GMG's strategy of extending its reach to secure its core newspaper operation.

And that's how the Emap deal fits into the big picture.

As McCall points out, GMG's "number one objective" is to secure the future of The Guardian and The Observer, by diversifying its portfolio. Its move into B2B will likely go some way to achieving that aim.

WHAT HAPPENS NOW?

- Will Emap Communications and Incisive Media be merged?
Alex de Groot, media analyst, Panmure: "(The merger) has been delayed. But, some sort of merger is likely over the longer term"

- What cost savings can GMG/Apax generate from Emap?
Paul Richards, media analyst at Numis: "There is a huge amount of duplication around operations and there are also revenue synergies"

- Is GMG spreading itself too thin with the Emap acquisition?
Mike Soutar, chief executive of ShortList: "No. It has a unique ownership structure and all of its businesses sit around its newspapers. There is a real sense of corporate logic to what they are doing"

- Will Emap Communications' B2B assets be floated back on to the stock market?
Alex de Groot: "Typically, private equity either floats companies as an exit route or sells them on, probably to another group".