Carlyle Group To Purchase Dealogic For USD 700 Million
Carlyle Group To Purchase Dealogic For USD 700 Million
Reuters has indicated in a report that Carlyle Group LP is all set to purchase US based financial data services provider Dealogic in a deal said to be worth USD 700 million. Carlyle itself is one of the largest private equity firms in the world.
The firm is collaborating and partnering with Randall Winn who is the former CEO of Capital IQ and Euromoney Institutional Investor Plc for the deal. The equity for this transaction will be coming from Carlyle Partners VI says Reuters. The latter is a buyout fund in the US for USD 13 billion.
Dealogic’s software and data platform are the established standard for the entire investment banking industry, Carlyle said in an official statement to the media. It data solutions would be provided to more than 500 clients globally, Dealogic said. This includes the top 50 investment banks of the world, according to Carlyle.
The financial advisers to the Carlyle Group for this deal were Barclays Capital Inc and J. P. Morgan Limited. Deutsch Bank Securities Inc and Latham & Watkins (London) LLP is the legal advisor according to a statement issued by the company to the media. Reuters has indicated that this deal is subject to regulatory approval and it will close by the end of 2014.
Co-investors for the Washington based firm are the CEO of Capital IQ apart from Euromoney Institutional Investor, according to WSJ as well. The latter is a financial and business magazine publisher. Euromoney indicated in a separate release that it had acquired 15.5% of Dealogic for a maximum of USD 59 million.
Carlyle said that the equity for the transaction is expected to be complete by the end of the year. Dealogic provides market intelligence as well as analytics and capital markets software to around 500 reputed clients across the world, reports WSJ. Wall Street Journal has also identified its offices as being in NY, London, Hong Kong, Tokyo, Budapest, Mumbai, Sydney, Sao Paulo and Beijing.
Investments in the financial technology sector have been made by this private equity firm in the past as well. In the month of September last year, Carlyle sold the remaining stake in a company it had invested in during the year 2005. It has also held Open Link Financial Inc which it sold to Hellman and Friedman in the year 2011.
Dealogic was recognised as a trusted brand and its a standard for the investment banking industry, a statement by Cam Dyer, the MD at Carlyle as quoted by the Financial Times. The latest acquisition by Carlyle has a potential to give the private equity company a firm foothold in the investment banking industry.
Dealogic has an international as well as a domestic presence. Adding further to the value of the acquisition is the fact that this company’s private equity research is highly sought after. As economic uncertainties increase and stakes for profits go higher, high quality private equity research has become much in demand. The numbers game has value for the private equity industry and Carlyle realises this, hence its timely acquisition.
