The Carlyle Group and its co-investors have agreed to acquire Dealogic, a provider of financial data and analytics, for approximately $700 million from the company’s management and its founders, who will re-invest equity into the transaction. The purchase of Dealogic is expected to close by the end of 2014.
Carlyle is partnering with co-investors Randall Winn, co-founder and former CEO of Capital IQ from 2004 to 2011, and Euromoney Institutional Investor, one of Europe’s largest business and financial magazine publishers with interests in financial publishing and event organization. Euromoney is headquartered in London (www.euromoneyplc.com). Carlyle’s equity will come from Carlyle Partners VI, a $13 billion fund which had a final close in November 2013.
“Partnering with Carlyle and Dealogic is a great opportunity,” said Mr. Winn. “Dealogic’s existing solutions are best-in-class for certain critical banker workflows and the company has developed exciting new products which are very compelling and broadens their addressable market.”
Dealogic is a financial software company that provides a platform for investment banks to conduct transactions in the areas of fixed income, equity capital markets, mergers and acquisitions, institutional sales and equity research, as well as FINRA, SEC and FTSE regulatory and investment banking strategies. Dealogic sells its products to more than 500 clients globally including each of the world’s top 50 investment banks. The company also works with other firms, such as the Wall Street Journal, to create financial leader boards. Dealogic competes with Bloomberg, Mergermarket, Thomson Reuters, and smaller financial services information providers such as the Sovereign Wealth Fund Institute and Preqin. The company was founded in 1983 and employs over 600 people. Dealogic is headquartered in New York and London with additional offices in Hong Kong, Budapest, Tokyo, Mumbai, Sydney, Beijing, and São Paulo (www.dealogic.com).
“Dealogic is a globally recognized and trusted brand and its software and data platform is the de facto standard for the investment banking industry,” said Cam Dyer, Managing Director of The Carlyle Group. “Through its 30-year history, Dealogic has invested heavily in developing its technology to create solutions that drive productivity and profitability for its customers and has become an increasingly important part of its customers’ critical work flows. We believe that Dealogic, with its talented management and employee base, will build on that success by introducing newly developed SaaS solutions and growing via acquisition to expand its relationships with customers.”
The Carlyle Group invests in buyouts, growth capital, real estate and leveraged finance in Africa, Asia, Australia, Europe, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The firm employs approximately 1,600 people in 38 offices across six continents and is based in Washington, DC (www.carlyle.com).
“Dealogic is a growth company and we have been investing heavily in our technology and information to create new, innovative products and enhanced services,” said Tom Fleming, the CEO of Dealogic. “We are excited to partner with Carlyle and will benefit enormously from their significant experience in the financial services technology sector and deep relationships across the financial community. Given our strong, long-standing relationships with our customers and excellent staff, Dealogic fits perfectly with the Carlyle model of investing in strong businesses and helping them considerably accelerate their growth and development.”
Barclays Capital and JPMorgan are acting as financial advisors to The Carlyle Group, which has secured committed debt financing from JPMorgan Chase Bank, Barclays Capital, and Deutsche Bank Securities.
2014 PEPD • Private Equity’s Leading News Magazine • 11-5-14