GlobalData shares surge on £434m investment from private-equity firm Inflexion

Data analytics and consulting firm GlobalData is selling a 40% stake in its healthcare division to private-equity group Inflexion for £434m, allowing it to de-leverage the balance sheet and accelerate M&A.

As part of a new growth plan and company reorganisation that will see it refocus on three divisions – healthcare, consumer and tech – GlobalData said the investment will "provide flexibility for accelerated value-creating M&A across the group".

The stock was up 24% at 197.6p in early deals on Thursday.

The deal means GlobalData's balance will go from net debt of £231m, equivalent to 2.3x leverage, to being debt-free and in a net cash position.

The amount, which values the whole healthcare unit at £1.12bn, compares with GlobalData's total group market capitalisation of £1.35bn despite the division only accounting for 36% of group revenues. The figure values the unit at 22 times full-year EBITDA.

"This is a significant milestone in GlobalData's evolution, and we are delighted to welcome Inflexion as a shareholder in our Healthcare division," said chief executive Mike Danson.

The deal is expected to close in the second quarter of 2024 and is subject to regulatory clearance and completion of the group reorganisation.

"The investment highlights the significant value in our unique data platform and gives us the flexibility to launch a more ambitious approach to growth investment across our portfolio. We believe that we can create substantial value for all shareholders and accelerate GlobalData's profitable growth over the coming years."