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Euromoney, the UK publisher, has ended a 30-year link with Dealogic, selling its 15.5 per cent stake to a US software company in a complex recapitalisation that values the data and analytics provider at a little over $1bn.
Ion Investment Group, a US provider of software to banks and companies, is taking a controlling stake in Dealogic. The private equity company Carlyle, which has held a majority share since 2014, is reducing its investment, while remaining a “significant” shareholder.
Ion’s takeover is the latest deal involving business information groups that provide data used on every City of London trading floor.
Private equity companies have been big investors in these financial research companies in recent years, attracted by their subscription models, which generate a steady stream of income to pay down debt.
The takeover of UK-based Dealogic is the latest deal in the sector and follows the $13bn megamerger of IHS and Markit in 2016 and a €3bn purchase this year of Burean van Dijk by Moody’s Corp, the US credit rating agency.
Dealogic competes with companies such as Bloomberg, selling data, analytics, market intelligence and capital markets services used by investment bankers around the world.
Ion and Carlyle did not provide details on the full financial terms. However, Euromoney said it would receive $135m for its stake, valuing Dealogic at $1.15bn.
Colin James, Euromoney finance director, said the disposal meant that the publisher had more than doubled its money, having originally bought its stake in 2014 for $59.2m, when Carlyle led a takeover of Dealogic.
“We only had a 15 per cent stake. We were not getting any cash, and it was not a good use of our capital,” said Mr James.
He added that Euromoney “can now invest in companies which we can control and grow”.
Euromoney first linked up with Dealogic in the 1990s when it helped produce the data for its league table product, which comprised scorecards listing the best performing banks, advisers and issuers.
During part of that period, Dealogic was listed on the small companies market Aim until Carlyle’s takeover in 2014.
Under Wednesday’s recapitalisation, Carlyle said it would retain “significant ownership” but did not disclose its share.
Cam Dyer, managing director of Carlyle’s technology, media and telecoms unit, said over the past three years it had “positioned the company for continued long-term success that can now be further extended by leveraging Ion’s complimentary capabilities, solutions and customers”.
Andrea Pignataro, Ion founder and chief executive, said Dealogic’s business would be highly complementary.
“Together, we will be able to accelerate the digitisation and automation of capital markets and introduce innovations to how financial institutions, investors and issuers conduct their business,” he said in a statement.
Tom Fleming, Dealogic chief executive, said: “We are excited to partner with Ion and will benefit from the strength of their platforms and their established network of relationships with financial institutions and corporations.”
Shares in Euromoney rose initially on the news but by midday were trading down 1 per cent at £11.40.
UBS advised Ion and Dealogic was advised by JPMorgan.