Dun and Bradstreet to Acquire Dun and Bradstreet Credibility for USD 320m.
M2 EQUITYBITES-April 27, 2015-Dun and Bradstreet to Acquire Dun and Bradstreet Credibility for USD 320m
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27 April 2015 - US-based commercial data provider Dun and Bradstreet (NYSE: DNB) and its Dun and Bradstreet Credibility Corp. have formed a new division, Dun and Bradstreet Emerging Businesses, as a combination of Dun and Bradstreet Credibility Corp.'s technology and data solutions with Dun and Bradstreet's small and mid-sized business assets, the companies said on Monday.
In 2010, Dun and Bradstreet divested its self-awareness solutions business to Dun and Bradstreet Credibility Corp., formed by private equity firm Great Hill Partners and current senior management, and entered into a data license partnership.
As a separate entity, Dun and Bradstreet Credibility Corp. developed and expanded that business by making significant investments in technology, marketing and people, and transformed the business into a growing and thriving subscription business serving a wide range of companies.
Under the new deal, Dun and Bradstreet will purchase Dun and Bradstreet Credibility Corp. for USD 320m in cash plus an earnout of up to USD 30m if certain performance milestones are met through 2018.
The acquisition is expected to contribute approximately 4% of revenue growth to Dun and Bradstreet's 2015 results and is expected to increase 2015 operating income by 2%, both before deal-related expenses including amortisation, deal costs, and the impact of purchase accounting on deferred revenue, and including planned integration expenses.
Dun and Bradstreet expects the deal to be neutral to 2015 adjusted earnings per share, due to interest expense associated with the expected debt financing for the transaction, and neutral to 2015 free cash flow.
The transaction is expected to become accretive to Dun and Bradstreet's adjusted EPS beginning in 2016. The transaction has been approved by both boards of directors and is expected to close during May of 2015, pending regulatory approval.
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|Publication:||M2 EquityBites (EQB)|
|Date:||Apr 27, 2015|
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