The combination of Dun & Bradstreet and NetProspex brings best-in-class capabilities to ensure professional contact data sets are accurate, complete and optimized for success. The addition of the NetProspex Workbench data services platform and CleneStep TM methodology to Dun & Bradstreet’s global commercial database will further enable customers to better understand their ideal customers, identify and prioritize opportunities, and grow their business.
NetProspex and its employees are now a part of Dun & Bradstreet and will continue to operate out of Waltham, Massachusetts. NetProspex CEO Michael Bird will transition to general manager of the newly-named Dun & Bradstreet NetProspex, reporting to Josh Peirez, chief operating officer, Dun & Bradstreet.
Dun & Bradstreet purchased NetProspex for $125 million net of cash assumed, on January 5, 2015. NetProspex’s revenue grew in excess of 20% in 2014, and is expected to contribute approximately 1% of revenue growth to Dun & Bradstreet’s 2015 results. That would mean that D&B paid between 6 to 7 times revenue for the business. The acquisition is expected to dilute 2015 earnings per share (EPS) by approximately 2%, before deal related expenses including amortization and deal costs, and to be neutral to 2015 free cash flow. The transaction is expected to become accretive to Dun & Bradstreet’s adjusted EPS beginning in 2016.
NetProspex had received $27.5 Million in 6 Rounds from 6 Investors: $ 13 million in Spring Lake Equity Partners and Edison Partners in April 2014; $ 7 million from Edison Partners in 2012 and $ 5.5 million in 2010 (plus the rest from undisclosed investors).
According to Dun & Bradstreet President and Chief Executive Bob Carrigan, the two companies have complementary strengths. Dun & Bradstreet maintains a global database of commercial information useful to companies trying to figure out which other businesses they might want to partner with or invest in. Meanwhile, NetProspex’s strength lies in maintaining a large database of professional contacts, he said.
“We have this business where 90% of the Fortune 500 uses our data and analytics for things like risk management, or for sales and marketing people to figure out, ‘which companies should I call on?’. NetProspex has information on the actual people at these businesses. So it gives us a nice one-two punch.”
Bob Carrigan, who several years ago served as the chairman of the Interactive Advertising Bureau when he was chief executive of IDG Communications Inc., also sees this deal as helping Dun & Bradstreet compete for digital marketing dollars in the lower-profile, though growing, business-to-business realm. Now that the deal is official, Bob Carrigan and his team plan to explore ways of providing data to ad technology companies and agency trading desks for digital ad targeting purposes. “That’s a new use case we are very keen on,” he said. “We own our data, and it’s not cookie data, it’s real people date. There could be lots of uses for this to target programmatically.”
The Dun & Bradstreet acquisition comes amidst a wave of consolidation in advertising technology as well as among marketing software and data management firms. For example, just a few weeks ago, Oracle snatched up Datalogix, a researcher than helps marketers evaluate the effectiveness of online advertising campaigns.