Limited Interest in Bureau van Dijk.
As reported in the April 2007 BIIA Newsletter, European private equity house Candover has put global electronic publisher Bureau van Dijk up for sale, in a move which could see the company fetch £500m – £600m (US$ 1 bn – US$ 1,2bn). Candover acquired a 60 per cent stake in Bureau van Dijk in 2004, with the remaining 40 per cent thought to be owned by management.
Industry analysts had speculated that the recent growth of consolidation in the industry and relative high multiples may spark a bidding war. As it turns out there has hardly been any interest.
There is value in knowledge and today’s multiples may be the inducement to sell, however to expect a value of US$ 1.2 bn for a company with less than US$ 100 million in revenues may be far fetched. BIIA Partner Password, Germany reported that the seller still expects a relatively high price of Euro 650 to Euro 700 million (US$900 to 970 million) and a second round of bidding has been opened. Offers from private equity firms are now being considered (previously excluded).
Limited Interest in Bureau van Dijk (continued): Insiders assume that the current lack of interest is based on the fact that van Dijk does not, technically speaking, own the underlying data of its services.
BIIA wrote in April: “Perhaps there may be another reason for cashing in. As an aggregator of financial statements Bureau van Dijk is sandwiched between public sector information providers and end users. Increased emphasis on disclosure and advances in technology drives the availability of structured financial information from the public sector, which in turn will be accessible by end-users directly”. Source: Password, Germany – BIIA Archive