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Dun & Bradstreet to be taken over in USD 6.9bn deal
Posted on Thursday, 09 August 2018 10:30
CC Capital, Canne Holding and funds associated with Thomas H Lee Partners, along with other investors, have formed a consortium to acquire commercial data and analytics firm Dun & Bradstreet for USD 6.90 billion, including the assumption of USD 1.50 billion in debt.

Not only would this proposal place in the top ten deals for data processing, hosting and related service providers announced since the start of this year, according to Zephyr, the M&A database published by Bureau van Dijk, it would also be the fourth largest such transaction in the US.

The consortium is offering USD 145.00 per share in cash, representing a premium of 15.2 per cent to Dun & Bradstreet’s close of USD 125.82 on 7th August, and a premium of 30.0 per cent to the group’s trading price of USD 111.63 on 12th February, prior to the first announcement of the strategic review.

Stocks in the target have gained 6.8 per cent since the start of the year, reaching a 2018 high-point of USD 133.42 on 12th June.

Thomas Manning, current chief executive, will continue to lead Dun & Bradstreet following completion and noted that after reviewing alternatives the board “unanimously determined that this all-cash transaction with the investor group is in the best interest of our shareholders and our company”.

Bank of America Merrill Lynch, Citigroup and RBC Capital Markets will provide debt financing for the transaction, with the consortium funding the rest of the consideration with committed equity funding.

Closing, which remains subject to shareholder approval and regulatory clearances, is expected within the next six months.

However, the agreement does include a go-shop period, whereby Dun & Bradstreet, with the assistance of its financial advisor JPMorgan, can solicit, evaluate and enter into negotiations with other interested parties.

The company has 45 days to decide whether to terminate or continue with the announced transaction.

Dun & Bradstreet helps companies around the world improve their business performance by offering commercial data and analytics services.

In the six months to 30th June 2018, the group recorded revenue of USD 857.80 million, up 9.0 per cent from USD 787.20 million in the corresponding period of 2017.

Net income totalled USD 156.90 million in H1 2018, compared to USD 60.60 million in H1 2017.

Zephyr shows that some of the largest US-based data processing, hosting and related service providers targeted in deals this year include information technology and infrastructure management software provider CA, which was acquired by Broadcom for USD 18.40 billion.

In addition, KKR & Co paid USD 8.50 billion for cloud-based lifecycle manager BMC Software, while Microsoft picked up code hosting platform GitHub for USD 7.50 billion.

© Zephus Ltd