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Capitol to acquire Cision
Posted on Monday, 20 March 2017 14:33
Blank check vehicle Capitol Acquisition Corp III is acquiring Cision in a deal which gives the software as a service media communications platform provider a backdoor listing on Nasdaq.
The combined entity is expected to have an initial enterprise value of USD 2.40 billion, implying a multiple of 10.5x 2017 projected adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) and 9.2x 2018 EBITDA.
Private equity house GTCR and current management are retaining all 100.0 per cent of their equity in Cision and once the deal completes, in the second quarter, will hold 68.0 per cent of the new listing group.
The media communications company has combined data, analytics, monitoring and technology into a unified platform that enables clients to effectively manage their earned media programmes.
Cision has revenue of over USD 600.00 million from products including PR Newswire, Gorkana, PRWeb, Help a Reporter Out (HARO) and iContact which serve over 75,000 customers in 170 countries and 40 languages worldwide.
Capitol hopes the merger will broaden the group’s market opportunity beyond the USD 3.00 billion intelligence software and services industry into the marketing software sector expected to reach USD 32.00 billion by 2018.
The ultimate goal is to enter the USD 195.00 billion-plus digital marketing and data markets by rolling out a reference platform for earned media called Cision communications cloud (C3) which delivers analytics on end user reach and engagement.
As part of the deal Capitol will provide USD 325.00 million of cash to trim existing second lien debt, and strong free cash flow derived from recurring revenue model should result in rapid deleveraging – 5.2x at transaction close.
The blank check was formed in 2015 to enter into a merger, share exchange, asset acquisition, recapitalisation or reorganisation.
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