Dun & Bradstreet to Acquire Dun & Bradstreet Credibility Corporation in a Combination that will Deliver Market Leading Solutions for Emerging Businesses
Dun & Bradstreet will purchase Dun & Bradstreet Credibility Corporation for $320 million in cash plus an earnout of up to $30 million if certain performance milestones are met through 2018. Since 2010, Dun & Bradstreet Credibility Corporation has more than doubled their revenue and in 2014 generated $135 million of revenue with an adjusted EBITDA margin of close to 20%. The acquisition is expected to contribute approximately 4% of revenue growth to Dun & Bradstreet’s 2015 results and is expected to increase 2015 operating income by 2%, both before deal-related expenses including amortization, deal costs, and the impact of purchase accounting on deferred revenue, and including planned integration expenses. The deal is expected to be neutral to 2015 adjusted earnings per share (EPS), due to interest expense associated with the expected debt financing for the transaction, and neutral to 2015 free cash flow. The transaction is expected to become accretive to Dun & Bradstreet’s adjusted EPS beginning in 2016.
In 2010, Dun & Bradstreet divested its Self-Awareness Solutions business to Dun & Bradstreet Credibility Corporation, formed by private equity firm Great Hill Partners and current senior management, and entered into a data license partnership. As a separate entity, Dun & Bradstreet Credibility Corporation developed and expanded that business by making significant investments in technology, marketing and people, and transformed the business into a growing and thriving subscription business serving a wide range of companies.
In conjunction with the acquisition D&B announced the formation of a new division, Dun & Bradstreet Emerging Businesses, a combination of Dun & Bradstreet Credibility Corporation’s leading technology and data solutions with Dun & Bradstreet’s small and mid-sized business assets. The new division will create a powerful team representing Dun & Bradstreetin the marketplace and will leverage Dun & Bradstreet Credibility Corporation’s established track record and suite of products to serve the unique needs of emerging business customers. The transaction has been approved by both boards of directors and is expected to close during May of 2015, pending regulatory approval.
Tapping the strength of Dun & Bradstreet Credibility Corporation’s management team and business model, the combined expertise, technology assets and processes will improve the ways in which Dun & Bradstreet leverages existing products, develops new products, and incorporates leading B2B and business contact data into products.
After deal close, Stibel will assume the role of Vice Chairman, Dun & Bradstreet. His responsibilities will include heading this new division, running Hoover’s products globally, and working with senior leaders on strategy and business development worldwide.
ABOUT DUN & BRADSTREET CREDIBILITY CORPORATION
Dun & Bradstreet Credibility Corporation is the leading provider of business credit building and credibility solutions for businesses. The company helps businesses establish their credit with a D&B D-U-N-S® Number and provides the only business credit solution available to businesses looking to build, monitor, and impact their business credit and credibility. The company’s headquarters are in Los Angeles, CA with offices throughout the United States. For more information on the company, please visit www.DandB.com.
Source: Dun & Bradstreet
