Global B2B information services provider EuroMoney Institutional Investor (LON:ERM) has announced a $14.5 million acquisition of WealthEngine Inc.
WealthEngine is software as a service platform that provides data-driven intelligence analytics to wealth managers, luxury brands and nonprofits. The company profiles US individuals to identify potential donors and customers for clients, primarily with revenues derived from subscriptions.
EuroMoney Ins. inv. The acquisition adds scale to the intelligence business of people that are currently made up of Wealth-X, BoardEx and WealthEngine. The group added that it is praising other recent additions, Wealth-X, with the acquisition of WealthEngine.
When added to BoardEx’s relationship mapping service, EuroMoney states that “there is full coverage across the Wealth Intelligence Valice Chain.” Additionally, annual contracts for Subscriptions and Pro-Forma EBITDA are expected to be $15.0 million and $2.0 million, respectively.
– Subscribe – Click here to subscribe
An institutional investor statement from EuroMoney said: “This highly complementary acquisition is expected to increase the operating margins of people’s intelligence and bring accelerated growth over the medium term. As a result, the acquisition has seen an increase in revenue from Euromoney and is currently accounting. It is expected to provide ROI that exceeds WACC in the fiscal year.”
James Lavell, Group CEO People Intelligence, added: This brings you key technologies, workflow solutions and essential data. This, when combined with Wealth-X and BoardEx, greatly improves the value offered to our customers. ”
After the update, Euromohny shares initially rose about 3%, but fell to a 0.58% rally on 1,040.00p 13:00 GMT 08/12/20. The price is about 2.2% ahead of the analysts’ consensus price target of 1,016p, but it’s a small price to have a 1,064pa share after lockdown.
Currently, analysts have a consensus “hold” rating on their stocks, but the MarketBeat community offers a 56.75% “underperformance” stance. The company’s AP/E ratio is 36.11 and its dividend yield is 3.17%.
