Euromoney Institutional Investor, the listed owner of the Euromoney brand, has agreed a £1.7bn takeover offer from two PE firms: Epiris, based in London, and Astorg, of Luxembourg. They first offered for the company in June at £11.75 per share but it took their fifth attempt at £14.61 per share to be recommended by the board.
It is thought both firms have an equal stake. The deal still requires Euromoney shareholder approval.
The PE firms plan to break-up the company. Astorg will take the subscription-dominant Price Reporting Agencies (PRAs) Fastmarkets, which accounts for 25% of revenue but 33% of EBIT. Epiris will take on the remainder including Euromoney magazine and other financial, asset management and professional services products.
The agreed price for Euromoney reflects the fact that two-thirds of total revenue is from subscriptions. It is a multiple of 20x EBITDA this year but some 16x 2023 forecasts.
The breakup of the company is likely to hasten post-acquisition deals.
Astorg may attract early bids for Fastmarkets from larger PRA competitors Argus Media, Platts, and Dow Jones. But it may first want to acquire either or both of the London-based PRAs AgriBriefing and CRU which have previously been involved in negotiations with Euromoney.
Epiris may be interested in adding the £70m, growing-again Centaur Media, owner of Econsultancy, MW Mini MBA, Influencer Intelligence, and The Lawyer.
