BC partially divests Mergermarket Group to GIC

Kenny Wastell
03 July 2017

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BC Partners has agreed to sell a 30% stake in Mergermarket Group, the parent company of unquote", to Singaporean sovereign wealth fund GIC.

Financial details of the transaction remain undisclosed, though a source familiar with the situation cited media reports stating the deal values the business at around £1bn. Another source close to the deal told unquote" a recent report from Sky News, which quoted the same figure, was broadly accurate.

It is understood the sale will see the GP return more than 2x its original investment in Mergermarket to investors, and will retain a stake of more than 60% upon completion. The first source said that at the current valuation, BC would be in line to generate a money multiple of more than 3x its initial investment, factoring in its remaining stake.

BC is invested in the business via its ninth fund, according to unquote" data, which held a €6.5bn final close in February 2012.

Under the GP's four-year tenure to date, Mergermarket has expanded via an acquisitive growth strategy. The group bought Perfect Information for £26m in June 2014 and New York-based publisher The Law Report Group the following month. It then acquired the unquote" and AVCJ private equity titles from Incisive Media in September 2015, before bolting on risk management information business C6 Intelligence in November of that year. In January 2016, it acquired Creditflux, a business intelligence company focused on credit funds and collateralised loan obligations, and acquired investment advisory platform TIM Group in May this year.

Mergermarket, which will be rebranded as Acuris in July, has also invested in product development and its IT infrastructure.

According to a statement issued by the vendor, the group's EBITDA has "approximately doubled" during BC's holding period.

The deal is subject to regulatory approval.

Previous funding
BC acquired Mergermarket from Pearson Group in December 2013 for £382m. BC emerged as the successful bidder following news in September 2013 that several private equity firms were courting the business, including HgCapital and Advent International.

Company
Founded in 2000 and headquartered in London, Mergermarket is a provider of business analysis, news and proprietary data products. The group has a headcount of 1,200 across 65 global locations.

People
BC Partners – Nikos Stathopoulos (managing partner).
GIC – Choo Yong Cheen (CIO).
Mergermarket Group – Hamilton Matthews (CEO).