5th Nov 2014 11:24
LONDON (Alliance News) - Euromoney Institutional Investor PLC said Wednesday that it is selling its interests in Capital Data and Capital Net to buy a 15.5% stake in data and analytics provider Dealogic for USD59.2 million.
Euromoney will take a 15.5% stake in a new company incorporated by the Carlyle Group to acquire Dealogic Holdings PLC alongside Carlyle and Dealogic's founders. As part of taking this stake Euromoney will be entitled to a seat on the New Dealogic board, and 20% of the voting rights in respect of the new company's equity. It will also be able to invest with Carlyle in any acquisitions that the new company may pursue.
The assets that Euromoney is selling have been jointly operated with Dealogic since the 1980's, the company said, and the sale values Euromoney's participation in the two businesses at USD85 million.
Euromoney will receive USD59.2 million in shares in the new company, USD4.6 million in cash on completing the transaction and a further USD21.1 million zero-coupon preference shares issued by the new company. It will continue to receive and use the league tables and data analytics products underpinning its GlobalCapital business.
The company booked subscription revenues and adjusted operating profits including licence fees of GBP5.4 million from its investment in Capital DATA for the year to end-September, and a pretax profit of GBP300,000 from its interest in Capital NET for the same period.
Dealogic posted adjusted earnings before interest, depreciation, and amortisation of USD66.7 million on revenue of USD152.3 million in calendar 2013.
The transaction is expected to dilute Euromoney's post-tax earnings by around 2% in the year to end September 2015, it said.
"Our relationship with Dealogic and its founders goes back to the 1980s. We are pleased to cement this important partnership under a new corporate structure," said Chairman Richard Ensor in a statement. "We believe that by combining our expertise, market access and resources the shareholders of Dealogic will be able to achieve substantial value creation over the coming years."
Shares in Euromoney are trading up 0.7% at 1,111.00 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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