Dealogic sale to boost Euromoney cash position

International business information and events group Euromoney Institutional Investor has reached a binding agreement to sell its minority equity stake in Dealogic, a provider of content and software solutions to financial firms, to Ion Investment Group for approximately $135m, it announced on Wednesday.

The FTSE 250 firm said the consideration would be received in cash, with completion of the sale subject to regulatory approvals, expected to take approximately six weeks.

Euromoney said it has been associated with the Dealogic businesses for more than 30 years, acquiring its stake in December 2014.

It would continue to receive the league tables and data analytics products used in its Global Capital business from Dealogic, the board confirmed.

Euromoney's results for the year ended 30 September, which were also released on Wednesday, included £3.9m in adjusted profit before tax from Dealogic.

The gross assets of Dealogic at 30 September were £551.6m.

It said the sale proceeds would initially be used to pay down debt, and over time would provide Euromoney with capital to invest in its main investment themes.

“This transaction is in line with Euromoney's strategy, one pillar of which is actively managing its portfolio of assets and selling businesses which do not align with its strategy and recycling that capital to invest in our main investment themes like price discovery, post trade activities, asset management and telecoms,” commented Euromoney CEO Andrew Rashbass.