25 Nov 2019 07:00
EUROMONEY INSTITUTIONAL INVESTOR PLC
ACQUISITION OF WEALTH-X
25 November 2019
Euromoney adds further scale to its People Intelligence pillar with the acquisition of Wealth-X
Euromoney Institutional Investor PLC ("Euromoney"), the global information business providing essential B2B information to global and specialist markets, announces the acquisition of 100% of Wealth-X Pte. Ltd. ("Wealth-X").
Wealth-X is the market-leading provider of data-driven intelligence on the world's wealthiest individuals. The platform's proprietary database is embedded in the workflow of banks, wealth managers, luxury brands and non-profit customers. It is used for business development and Know Your Client activities.
The acquisition adds a further 3.0 information services business to the portfolio within the Financial & Professional Services (FPS) division.
Wealth-X is expected to deliver a revenue CAGR of 13% for the 3 years to 31 December 2019. Unaudited revenue and pro forma EBITDA[1] for the 2019 financial year is expected to be $12.7m and $0.8m respectively. Revenues are derived predominantly from selling subscriptions which have high renewal rates.
Wealth-X is highly complementary to BoardEx, a market-leading executive profiling and relationship mapping business acquired by Euromoney in February 2019. Wealth-X provides intelligence on business development opportunities within the high net worth and ultra-high net worth markets and BoardEx facilitates the relationship network to connect these individuals. As a result, the acquisition is expected to accelerate BoardEx's expansion into the fast-growing Wealth Management sector.
Wealth-X and BoardEx share complementary technologies and people intelligence processes. Both products are directly integrated into a client's CRM system and share a common roadmap for future development. Under Euromoney's ownership there are further opportunities to increase scale and accelerate growth.
Euromoney will pay $20.4 million in cash for Wealth-X representing a 1.6x multiple of 2019 revenue and 25.6x multiple of 2019 EBITDA. This is expected to reflect a multiple of below 12x 2020 EBITDA. The acquisition is expected to enhance group revenue growth and be earnings accretive for Euromoney in its current financial year and deliver a ROI above its WACC in the first full financial year.
Jeff Davis, CEO, Financial & Professional Services, Euromoney, said: "The acquisition of Wealth-X is a great addition to Euromoney's portfolio and supports our strategy to evolve towards a 3.0 information services business. Wealth-X is a leading brand, providing workflow solutions and must-have information to the fast-growing Wealth Management market, as well as luxury and non-profit sectors. Wealth-X is highly complementary to our existing portfolio and along with BoardEx, it will create further scale within our People Intelligence offering and accelerates the growth of both businesses".
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For further information, please contact:
Euromoney Institutional Investor PLC
Wendy Pallot, Chief Financial Officer: +44 (0)20 7779 8845; wendy.pallot@euromoneyplc.comSarah Cooke, Head of Investor Relations: +44 (0) 20 7779 7363; sarah.cooke@euromoneyplc.com
FTI Consulting
Charles Palmer / Jamie Ricketts / Amy Hurnell / Jamille Smith: +44 20 3727 1000; euromoney@fticonsulting.com
About Euromoney Institutional Investor PLC
Euromoney is a global information business providing essential B2B information to global and specialist markets. Euromoney provides price discovery, market intelligence and events across our segments. Euromoney is listed on the London Stock Exchange and is a member of the FTSE 250 share index.
www.euromoneyplc.com
LEI number: 213800PZU2RGHMHE2S67
[1] Revenue and Pro forma EBITDA is for the year ended 31 December 2019, excluding one-off transaction and integration costs