EQT buys Bureau van Dijk from Charterhouse

The secondary buyout was made through the EQT VI fund, and adds to EQT's portfolio of data services companies, which include Sportradar. Former portfolio companies in the sector include Springer, sold to BC Partners.

BvD's management will remain at the company to help carry out EQT's plans to develop the publisher and accelerate growth. The deal is expected to complete in September 2014, subject to customary anti-trust approvals.

EQT partner Kristiaan Nieuwenberg told unquote" that when BvD had refinanced earlier this year, the GP picked up on rumours that the business could be for sale, and contacted Charterhouse about a deal. He added that EQT is very fond of the broader database and data services sector. The GP was notably attracted by BvD's consistent double-digit growth over the past 20 years.

Though specific amounts were undisclosed, the deal was said to be worth in excess of €1bn.

The investor plans to support the existing management in continuing to implement BvD's growth strategy - which notably involves making additional investments in current systems, as well as developing new product and product extensions.

The company will also focus on improving its sales force and expanding its international operations further.

EQT and BvD will announce further details, including which EQT partners will take a place on the board, after the deal is finalised.

The deal marks the second buyout of a publisher by Swedish private equity firms in just two months, after Segulah bought Swedish newspaper group Mitt i in June.

Debt
A debt package of around €845 million will be supplied by Deutsche Bank, Goldman Sachs, HSBC, and ING. It will be made up of a €595m first lien euro, dollar and sterling-denominated loan, as well as a €225m second lien in euros and dollars, the latter of which has been pre-placed with a Goldman Sachs fund.

A €25m revolving credit facility has also been arranged.

Though the leverage ratio is 7.6x in total, sources close to the deal told unquote" that more highly leveraged debt packages had been offered by some banks ahead of the deal, and that the leverage ratio will be lower than under the structure in place during BC Partners' ownership.

One source noted that EQT had settled for a lower ratio despite the fact that BvD is a highly cash-generating business that was easily able to manage its previous level of leverage.

The package is expected to be offered up for syndication in September, and could be seen as an indication of the increasing competition among debt providers, as more banks chase large-cap deals.

Previous funding
EQT will be BvD's third private equity owner after completing the buyout from Charterhouse, which is exiting the company three years after acquiring it from BC Partners for €960m in July 2011.

Interestingly, in late 2013 BC Partners bought Mergermarket – a company that provides similar services to BvD – from Financial Times-publisher, Pearson.

BC's original purchase of BvD was a secondary buyout from Candover in 2007, which represented a 2.3x return on Candover's initial investment. The deal value was thought to stand at around €300m.

Company
Amsterdam-based BvD was founded in 1991 and has 650 employees operating in 33 offices across Europe, the Americas and Asia-Pacific.

The publisher provides information about private companies and corporate structures, primarily to business clients.

People
EQT partner Kristiaan Nieuwenburg led the deal for the GP and was assisted by partner Dominik Stein, directors Thomas Hansen and Jeroen Regeur, as well as associate Rob van der Zande.

Advisers
Equity – Goldman Sachs International (Corporate finance); ING (Corporate finance); Allen & Overy (Legal); Latham & Watkins (Legal).
Vendor – HSBC (M&A); Ashurst, Yann Gozal, Julien Rebibo, Aurélie Chazai, Pauline Laredo (Legal); David Carter (Corporate finance); Luke McDougall (Corporate finance).

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Benelux
• Media
• Exits
• Buyouts
• EQT
• Netherlands