Montagu-backed intel provider Janes attracts takeover interest amid defence spending boom

Ryan Gould , Josh O'Neill , Charlie Taylor-Kroll and Gustav Hoejmark-Jensen
17 April 2023

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Private equity firms are eyeing security and defence intelligence specialist Janes ahead of a potential sale in the coming year, according to four sources familiar with the matter.

Owner Montagu Private Equity is in the early stages of considering exit options for UK-based Janes, which it acquired from IHS Markit for USD 470m (GBP 375m) in 2019, the sources said. Financial sponsors have expressed interest in the business in recent months amid a boom in global defence spending and activity, two of them added.

Prospective sale advisers have yet to be approached over a possible exit and, should Montagu decide to push ahead with a sale, a formal auction is unlikely to kick off until early 2024, two of the sources said.

In the event of a sale, Janes is expected to be marketed off EBITDA in the region of GBP 50m or more, according to two of the sources. Janes generated EBITDA of GBP 32.2m for the year ending November 2021, up from GBP 27.9m in the same period the year before, company accounts filings show. Revenues rose to GBP 81.9m from GBP 71.5m.

A move by Montagu to push ahead with a sale of Janes would capitalize on elevated interest and greater spending on defence amid rising geopolitical tensions, one of the sources said.

Established in 1898, Janes provides intelligence, data and analysis on global defence and security issues. Its services include data and AI-driven identification of patterns and trends around global security developments as well as analysis on military capabilities, geopolitical developments and emerging security threats.

A deal for Janes would also follow a flurry of planned private equity exits from market intelligence, data and analytics providers. Intermediate Capital Group's With Intelligence, Bridgepoint's PEI Media and Bain Capital's Kantar are among assets in the deal pipeline for the coming year.

A representative for Montagu declined to comment. Janes did not respond to a request for comment.