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DMGT sells US property data business to private equity firms
Posted on Tuesday, 13 March 2018 11:22
US private equity giants Silver Lake Partners and Battery Ventures are shelling out USD 205.00 million for British media conglomerate Daily Mail and General Trust’s (DMGT’s) property information business, Environmental Data Resources (EDR).

The London Stock Exchange-listed vendor stated that the divestment was in line with its strategic priorities of “increasing portfolio focus and enhancing financial flexibility”.

Completion is expected in the coming weeks. No further information was disclosed.

Headquartered in Connecticut, EDR was established in 1990 and collates real estate data, including government records, site assessments, fire insurance maps, aerial photos, and city directories.

DMGT manages a portfolio of companies that includes DMG Media, which is the publisher of the Daily Mail tabloid newspaper, as well as US-based Risk Management Solutions and online discount vouchers marketplace operator Wowcher.

It acquired the target in 2000 and originally announced its plans to sell the company in its yearly results in November 2017, which also projected declining revenues for the 2018 financial year due to volatile print advertising market conditions, and lower circulation volume.

On the back of the news, the London-headquartered firm’s stock fell 23.9 per cent to GBP 5.35, its lowest in five years.

DMGT reported a GBP 177.00 million loss from continuing operations for the year ending 30th September 2017, down significantly from the GBP 181.80 million profit posted for 2016.

Its disposal of property information business EDR comes as no surprise as the group’s entire US real estate division has felt the impact of impairment charges, and data provider Xceligent’s recent legal battle over allegedly stealing data from rival CoStar.

Silver Lake claims to be the global leader in technology investment, with around USD 39.00 billion in combined assets under management and committed capital.

Battery Ventures has raised more than USD 6.90 billion and invested in over 300 companies since it was founded in 1983.

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