InfoGroup (NASDAQ: IUSA),  a provider of data driven and interactive resources for targeted sales, marketing and research solutions has been taken private by private equity firm CCMP for US$ 460 million.   The price is less than one times revenue and comes as the result of a long-running drama that heated up with an investor lawsuit, the departure of long-term CEO Vin Gupta, and the disarray and distraction it caused for the management.  The board of directors had put the company up for bid and it was rumored some months ago that the bidding list had grown to approximate 40 companies including the likes of D&B and Acxiom.  Based on the purchase price the bidders list must have evaporated and industry insiders speculate now what CCMP has up its sleeve to rejuvenate the ailing company. 

InfoGroup’s 2009 revenue was $499.9 million compared to $588.7 million in 2008, a drop of 15%. Revenue for the company’s three divisions all fell at double-digit rates.  Data Group revenue for fiscal 2009 was $255.8 million compared to $309.5 million for 2008, down 17%.  Services Group revenue for fiscal 2009 was $146.2 million compared to $163.3 million for 2008, a decrease of 10%.  Revenue for the Market Research Group for fiscal 2009 was $97.9 million compared to $115.9 million for 2008, a decline of 16%.  The company is ranked #4 in total revenue for the total Company Information segment, and the total information segment. 

CCMP Capital is a private equity investment firm that focuses on leveraged buyout and growth capital transactions. Formerly known as JP Morgan Partners, the investment professionals of JP Morgan Partners separated from JPMorgan Chase on July 31, 2006. CCMP has invested approximately $12 billion in leveraged buyout and growth capital transactions since inception. CCMP has over 50 employees with offices in New York, London, Hong Kong and TokyoSource:  Company Press Release and Outsell Inc.

BIIA Newsletter March II – 2010 Issue