Euromoney offloads Global Markets Intelligence Division in $180.5m deal

Business information and events group Euromoney Institutional Investor has reached a binding agreement to sell its Global Markets Intelligence Division (GMID), consisting of CEIC and EMIS, to a consortium of CITIC Capital Partners Management and Caixin Global, for an equity value of $180.5m.

The FTSE 250 firm said the sale was expected to complete by the end of April, to allow for a smooth transition of the business to the consortium.

It said the consideration would be received in cash on completion.

“This transaction is another example of Euromoney's strategy in action: where a good business is not strategic, we will sell it and recycle capital towards our main investment themes like price discovery, asset management and telecoms,” said Euromoney CEO Andrew Rashbass.

“CITIC Capital and Caixin will provide an excellent home for the business, which Aloisio Parente and the whole team have done a fantastic job developing as part of Euromoney.

“I am confident that the business will thrive under its new owners.”

Headquartered in Hong Kong, Euromoney described GMID as a “leading provider” of macro-economic, company and industry intelligence on emerging markets with a strong customer presence in China, India, Brazil and Central and Eastern Europe, as well as in developed markets.

For the year to 30 September 2017, GMID reported an operating profit of £11.9m, as disclosed in the notes to Euromoney's 2017 annual accounts.

GMID's gross assets at 30 September 2017 were £45.3m.

The sale proceeds, net of transaction costs and tax, were expected to be approximately $145m.

That would leave Euromoney in a net cash position at completion, and would provide Euromoney with further capital to recycle towards its main investment themes.

“I am tremendously excited about the opportunities that this transaction will afford to our business, customers and staff,” said GMID CEO Aloisio Parente.

“Both CEIC and EMIS have traditionally had a strong presence in and understanding of the key developing markets.

“I am certain that the relationship with CITIC Capital and Caixin will help us to further enhance the value and reach of our services in all parts of the world.”

Yichen Zhang, chairman and CEO of CITIC Capital, added that the company was “very excited” to make the investment in CEIC and EMIS.

“Together with Caixin, we look forward to working with the management team to continue growing the business and developing its global customer base.”

Shuli Hu, publisher of Caixin Media and chairwoman of Caixin Global, said the company was “optimistic” about GMID's business and future.

“Caixin will further leverage the rising global influence of China's economy, and combine state-of-the-art technology with its authoritative information service and data offerings.

“We will join forces together with GMID to provide indispensable data and insight for overseas and domestic financial industry professionals and stakeholders.”