Showing posts sorted by relevance for query bvd. Sort by date Show all posts
Showing posts sorted by relevance for query bvd. Sort by date Show all posts

Friday, June 15, 2007

Bureau Van Dijk: Sale Interest Low

The Private Equity fund Candover placed BVD on the block two months ago amid a highly volatile environment for information and financial database companies. Who could doubt that the time was ripe. However, according to The Financial Times the initial indications of interest have been under whelming thus far. Some of the likely bidders - Reuters, Thomson, Pearson - have not come through with bids and this has disappointed the owners. The company itself appears to be doing well but according to the article some potential buyers are concerned that a lot of the content is not owned by BVD.
These sources also mentioned the fact that Bureau van Dijk does not technically own its own information, as a potential cause for concern for potential bidders. On the other hand, one source noted that it can be seen as a high-quality asset, as reflected in the 9-10x EBITDA multiple being offered in two separate staple finance packages from Goldman Sachs and RBS. Bureau van Dijk’s products include bank, corporate and M&A databases such as BankScope and AMADEUS and ZEPHYR.

Here is the link to my earlier post on BVD.

As the quote above indicates, BVD has strong branded products, in key markets that command high margin revenues. BVD is expected to go for around $1.3billion and given the prices paid for recent information companies it could still surprise.

Friday, July 20, 2007

Bureau Van Dijk: Sale Imminent - Update: SOLD

Reuters is reporting that Candover, the principle owner of BVD is likely to agree a sale with one of the two equity groups vying for purchase of the company. Sources tell Reuters that BC Partners and Cinven are the two remaining parties and they estimate that the purchase price will be under 700mm Euros. BVD has a strong market position where it competes but some companies that were initially interested expressed some concern that the data the company distributes isn't owned by BVD. It is hard to know how accurate or relevant this issue was in the sale process but it would seem that unless we see a last minute surprise on purchase price that there will not be a significant premium paid over the initial estimate which we have seen with some other recent media company sales.

Having said that Candover invested 300mm Euros in 2004 - not such a bad return. Management are going to do well also. Good on them.

UPDATE: Reuters is reporting BVD has been sold to BC Partners for a little less that $1.obill. The deal is expected to close in October pending regulatory approval. Reuters

Monday, May 15, 2017

Moody's to Buy Amsterdam based publisher Bureau Van Dijk (BVD) for $3.3Billion

From Reuters:

Credit ratings agency Moody's Corp (MCO.N) said on Monday it would buy Dutch financial information provider Bureau van Dijk for about $3.3 billion, to extend its risk data and analytical businesses. 
Moody's will fund the deal through a combination of offshore cash and new debt financing.
Amsterdam-based Bureau van Dijk, owned by the fund EQT VI, distributes financial information and private company datasets of 220 million companies.
The deal is expected to benefit Moody's revenue and earnings in 2019, while adjusted earnings in 2018 is expected to see an uptick.
From the press release:
Moody’s Corporation (NYSE:MCO) announced today that it has entered into a definitive agreement to acquire Bureau van Dijk, a global provider of business intelligence and company information, for €3.0 billion (approximately $3.27 billion). The acquisition extends Moody’s position as a leader in risk data and analytical insight.

“Bureau van Dijk is a high growth information aggregator and distributor that positions Moody’s at the center of a unique network of global risk data,” said Raymond McDaniel, President and Chief Executive Officer of Moody’s. “This acquisition provides significant opportunities for Moody’s Analytics to offer complementary products, create new risk solutions and extend its reach to new and evolving market segments.”
“Moody’s is a highly regarded, authoritative source of credit ratings and analytical tools, with a strong brand and global reach,” said Mark Schwerzel, Deputy CEO of Bureau van Dijk. “The addition of Bureau van Dijk’s powerful information platform to Moody’s Analytics’ suite of risk management solutions presents a wide range of opportunities for us to better serve our combined customer base.”
Bureau van Dijk, operating from its Amsterdam headquarters, aggregates, standardizes and distributes one of the world’s most extensive private company datasets, with coverage exceeding 220 million companies. Over 30 years, the company has built partnerships with more than 160 independent information providers, creating a platform that connects customers with data that addresses a wide range of business challenges.
Bureau van Dijk’s solutions support the credit analysis, investment research, tax risk, transfer pricing, compliance and third-party due diligence needs of financial institutions, corporations, professional services firms and governmental authorities worldwide.
In 2016, Bureau van Dijk generated revenue of $281 million and EBITDA of $144 million. Bureau van Dijk will be reported as part of Moody’s Analytics’ Research, Data & Analytics (RD&A) unit. Moody’s expects approximately $45 million of annual revenue and expense synergies by 2019, and $80 million by 2021. On a GAAP basis, the acquisition is expected to be accretive to Moody’s EPS in 2019. Excluding purchase price amortization and one-time integration costs, it is expected to be accretive to EPS in 2018.
Moody’s will fund the transaction through a combination of offshore cash and new debt financing. The acquisition is subject to regulatory approval in the European Union and is expected to close late in the third quarter of 2017.
Bureau van Dijk is owned by the fund EQT VI, part of EQT, a leading alternative investment firm with approximately €35 billion in raised capital across 22 funds. EQT funds have portfolio companies in Europe, Asia and the U.S. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.
"We are very pleased with Bureau van Dijk's development under EQT ownership and want to thank management and employees for their hard work and dedication. We see an excellent fit between Bureau van Dijk and Moody’s Analytics, and congratulate Moody’s on acquiring this uniquely positioned company," said Kristiaan Nieuwenburg, Partner at EQT.
 
Some older stories on BVD from the blog:

Private Equity owners but the company up for sale in 2007 and had trouble selling at the time.  Reports suggested it sold for about $1.0B so quite an impressive return over 10 years for some group of owners.

Thursday, April 12, 2007

Reed Speculation

Via the Independent (UK), an investment analyst is suggesting that Reed Elsevier is under-valued and that a PE bid could push the share price up 85% higher than yesterdays close of 619p.

Collins Stewart adds that, with a current debt weighting of just 1.4 times earnings, Reed is under-leveraged and if it does not gear up its balance sheet "maybe private equity will do the job instead". The broker estimates at a debt multiple of 8 times earnings the shares could be worth up to 1,147p
Once the sale of Harcourt is done perhaps some activity will heat up. I see them being very interested in Bureau van Dijk as it would fit nicely into their legal and regulatory segment. Interestingly, the international spread of BvD could also aid Reed in expanding legal and regulatory into wider global penetration with new products and data/information.

Wednesday, April 11, 2007

Deal News: Bureau van Dijk On the Block

The Daily Telegraph is reporting that Bureau van Dijk has hired LongAcre Partners and Goldman Sachs to review the company's strategic options. Generally a prelude to a sale.
Industry sources said Bureau van Dijk is likely to generate bidding interest from business information publishers Reed Elsevier, Reuters, Pearson and Incisive Media, which was last year acquired by private equity firm Apax. US bidders such as Dow Jones & Co, publisher of the Wall Street Journal, Standard & Poor's owner McGraw-Hill and Factset are also likely to be interested.
BvD was sold to Candover a number of years ago when the founder and owner sold 60% ownership. Senior management own the balance of the stock. The company publishes business and company information on millions of companies (private and public) around the world. From their web site:
We provide detailed, analytical databases, for in-depth research, such as AMADEUS (a pan-European database), ORBIS (33 million companies around the world) as well as extensive country-specific databases (FAME, DIANE, DAFNE). These products are ideal for in-depth research of individual companies, identifying
companies complying with specific criteria plus detailed analysis of company
peer groups and benchmarking. In addition, our ZEPHYR database covers M&A
deals and rumours around the world.
The Telegraph suggests the company could be worth over $1.1billion; however, financial information is sparse and this company could be a one of a kind deal given the value of the type of information it collects and the depth of its databases.

Sunday, July 24, 2011

MediaWeek (Vol 4, No 30): Arundhati Roy, JSTORE Illegal Downloads, Kaplan's $1.6mm Bill, High Journal Prices, Three Rules of Reviewing + More

The New Statesman has a long feature article on Arundhati Roy and this is only a small sample (NewStatesman):
Roy has not published any fiction since The God of Small Things, much to the impatience of the six million people who bought that book (and, you imagine, her agent David Godwin). Over the past 14 years, she has instead devoted her energy to India's most urgent political challenges: nuclear tests, dams, Kashmir, Hindu nationalism, terrorism, the emergence of a super-wealthy elite and the 800 million citizens who still live on less than Rs20 (30p) a day.Roy's version of India is uncompromising. The country, she says, is in "a genocidal situation, turning upon itself, colonising the lower sections of society who have to pay the price for this shining India". Its leaders are "such poor men because they have no idea of history, of culture, of anything, except growth rates". The prime minister, Manmohan Singh, is a "pathetic figure as a human being". Democracy is thriving "for a few people, in the better neighbourhoods of Bombay and Delhi". The Indian elite are "like an extra state in America". The country has a defence budget of $34bn this year. "For whom?" she asks. "For us." In her account, there is a war taking place, not with Pakistan or China, but within India's borders: the sham democracy has turned on its poorest citizens.
Activitst and technology innovator Aaron Swartz faces 35yrs in jail for illegally accessing and downloading millions of articles through the JSTORE account at MIT. (Clearly, a speed reader). Inside HigherEd takes a look at the charges (IHEd)
Swartz has been involved in numerous efforts to make more information available free to more people. But the charges he faces make no distinction between his possible philosophical goals and any other kind of theft. "Stealing is stealing whether you use a computer command or a crowbar, and whether you take documents, data or dollars. It is equally harmful to the victim whether you sell what you have stolen or give it away," said a statement from U.S. Attorney Carmen M. Ortiz. While Swartz could not be reached for comment, his many fans mobilized support online, charging that the government was essentially treating him as a criminal for violating the terms of service in place at MIT and with JSTOR members. More than 15,000 people signed petitions on his behalf within hours of word of the charges he is facing. The blog of Demand Progress -- a group Swartz previously led as executive director -- published a statement saying that "he is being charged with allegedly downloading too many scholarly journal articles from the Web. The government contends that downloading said articles is actually felony computer hacking and should be punished with time in prison."
The Chronicle blog Wired Campus notes the move by research libraries UK to take a more aggressive stand against 'high journal' prices with particular attention paid to Elsevier and Wiley. This activity stems from a report commissioned by the group in November and a subsequent journal article published in March, 2011. (Wired Campus)
David C. Prosser, executive director of the association, said it is pushing for a reduction of 15 percent in the cost of Big Deals, and that it focused on Elsevier and Wiley because those contracts expire at the end of 2011. “It was a slow and gradual realization” that they had grown too expensive, he said. “There are many benefits to the library community of the Big Deals. So for quite a while, those benefits were outweighing the major concerns.” But like their counterparts in the United States, British research libraries have endured financial strains lately. In Britain that included not only the global recession and a major reorganization of higher-education financing but a crash in the value of sterling in 2008. Mr. Prosser said that hurt libraries in Britain because they pay most of the larger publishers in euros or dollars, not in sterling.“So we lost hundreds of thousands of pounds of buying power overnight,” he said. “That was the point at which people began saying, ‘We’re tied into things over which we don’t have a lot of control.’” According to Mr. Prosser, Elsevier and Wiley have both proposed deals with new terms, but neither comes close to satisfying the group’s conditions. “We are having to reconcile ourselves to the fact that we may not be able to reach a deal,” he said.
From Dow Jones: A Kaplan school has agreed to pay $1.6mm in fines related to a whistle blower case on fraudulent enrollment practices. The wire report also notes the resignation of two senior Kaplan executives (DJ):
The suit was initially brought by David Goodstein, the campus's former director of education. The U.S. Department of Justice contacted Kaplan about the program in 2008, according to Washington Post securities filings.Under the settlement, CHI will make total payments of $1.6 million. An attorney for Goodstein said in a press release that the payment includes $1.13 million for the federal government and just under $500,000 to satisfy student loans of program participants. Goodstein will receive a percentage of the government's settlement amount. The campus had been the focus of other investigations, including a program review by the Education Department.Earlier this week, Kaplan said that the chief executive and chief financial officer of Kaplan Higher Education were resigning. The organization is shifting many services provided by that unit into two separate institutions--one for campuses and the other for its online operation.
Here is the corresponding press release from Kaplan on the executive changes:
Kaplan, Inc. Chairman and CEO Andrew Rosen today announced a more cost-efficient organizational structure for Kaplan Higher Education (KHE). This change will reallocate resources to preserve and enhance quality student services and academic innovation, while streamlining general and administrative activities. Most centralized services provided under the KHE umbrella will be shifted to the units that house its two separate types of institutions—the Kaplan College/Kaplan Career Institute campuses, and Kaplan University. Some centralized services will move to Kaplan, Inc. The KHE administrative infrastructure will essentially disappear. Jeffrey Conlon, who has served as Chief Executive Officer of Kaplan Higher Education since 2009, will be leaving his post. Conlon has been with Kaplan since 1993, first in its Test Prep division. He joined Kaplan University in 2004 and became President of its campus-based schools in 2005. He took over as president of Kaplan Higher Education in 2008. “During his tenure, Jeff has been instrumental in improving student outcomes, raising academic standards, and introducing the bold Kaplan Commitment initiative, which helps ensure that our students are making well-informed educational choices,” said Rosen. “He has been an important part of Kaplan for many years, and we owe him a deep debt of gratitude.” As part of the restructuring, Lionel Lenz relinquishes his role as chief financial officer for KHE. Lenz joined Kaplan in 2009 and has earned a reputation for managing complex operations to support large-scale growth.

Scott McLemee in Inside Higher Ed takes a view on the changes in book retailing (IHEd):

But schadenfreude at corporate misfortune is, in this case, a bit shortsighted. The impact of “restructuring” the retail book and magazine trade (to use the blandest possible term for this wave of creative destruction) goes beyond the obvious immediate effects on consumer behavior. A revival of independent bookselling is the least likely outcome, at least in the short run. Rather, the shrinking number of outlets for hardbacks and paperbacks will create a greater incentive for publishers to emphasize e-books. (As if wiping out the expense of putting unsold copies in a warehouse were not enough.) The tendency is likely to be self-reinforcing: the easiest way to get an e-book is from an online vendor. Last summer, a prominent cyberpundit predicted that the printed book would be “dead” as a major cultural form within the next five years. This seems a little less preposterous all the time.

There are three rules of book reviewing - once you get past the introductory passages on how nasty you can be (Slate):

In that old style-sheet, put together when books and newspapers were in their heyday, I found the three principles that have guided me ever since as a writer and as a reader. Of course, this three-part Golden Obligation may be filled compactly, on the way to essayistic arguments and insights, as in many a Slate piece. Great models like G.B. Shaw's music reviews or Max Beerbohm on theater are great because they show how to do the essentials, then get quickly beyond them, in ways that are fun to read.Every book review, said the anonymous document, must follow three rules: 1. The review must tell what the book is about. 2. The review must tell what the book's author says about that thing the book is about. 3. The review must tell what the reviewer thinks about what the book's author says about that thing the book is about.

And in sports, Tiger proves he still has something left to surprise us with (in a nasty way) NYT From the twitter: BBC News - Author Lee Child wins top crime award Documentary about graphic designer Milton Glaser. BeyondChron: Open Letter to AG Holder: Don’t Let Authors Guild Hijack “Google Books” and “Freelance” Copyright S'ment Prospect of privatizing Toronto’s library sparks outcry WSJ.com - Macmillan Fined Over Africa Contracts Fraud RLPC-Charterhouse gets 500 mln euro loan for BvD buyout Move to seize David Hicks' book cash will test US military conviction