📺 The next episode - Asymmetrix Newsletter #50
Kantar Media finally transacts in a hectic week for Data & Analytics M&A
It was tough to choose a deal to dig into this week, with so much interesting news to choose from.
In the end we selected the final instalment of the Kantar Media saga, as H.I.G. acquired the business for c.USD1bn.
Other news covered in this week’s newsletter that we could have selected for deeper investigation includes:
Euronext’s focus on consolidating market infrastructure assets in Europe; HBX Group’s announced listing on the Spanish stock exchanges; The Trade Desk’s acquisition of advertising data provider Sincera; Moody’s purchase of property insurance-focused CAPE Analytics; carbon ratings agency BeZero’s USD32m raise; or EVE’s USD47m Series A fundraise from a16z, Lightspeed and Menlo Ventures.
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📧 If we missed your deal, or you would like to talk, please email us at a.boden@asymmetrix.info.
📺 The Saga Continues
The sale of Kantar Media by Kantar Group has been compulsive viewing.
Sky News first leaked the story a year ago. At that point Kantar Media’s estimated EV was GBP1bn - in the end it’s going for roughly USD1bn.
The sale has been on the cards for even longer than that - perhaps even since Bain Capital acquired their 60% stake in parent company Kantar Group in 2019 in a deal that valued the overall business at GBP3.2bn.
What happened?
Asymmetrix has followed the deal’s progress since September, when JP Morgan and Jefferies distributed information memoranda, and we learned that the business was being marketed off EBITDA of USD120m.
At that point Vista Equity Partners, CVC, Cinven and Triton Partners were rumoured to be involved in the process.
There was brief rush of excitement in early December, when competitor Ipsos were rumoured to consider bidding, but a week later they publicly announced that they had changed their minds.
In the end the path was left clear for H.I.G. to close out the auction process and take ownership of the business.
Why it matters
Audience measurement is a world in flux. The battle to create a new system for measurement and currency is underway.
The decline of linear TV and the advent of streaming has shaken up the traditional dominance of audience measurement providers such as Kantar and their mighty US competitor, Nielsen.
In addition, in 2021 Nielsen had its national and local TV measurement accreditation suspended by the Media Rating Council (MRC) for undercounting, causing even greater perturbation in the market. Nielsen regained their National TV accreditation in November last year, but the genie was out of the bottle.
Nielsen were already building a multi-platform measurement system, Nielsen ONE, which launched in October 2023, aiming to provide both panel-based measurement and census data, as Kantar Media does, alongside ACR-based TV measurement, like the new entrants in the market, such as Samba TV or TVision. But Nielsen ONE has not yet received MRC accreditation.
Nielsen was taken private in March 2022 by a number of private-equity firms led by Evergreen Coast Capital Corporation, an affiliate of Elliott, and Brookfield Business Partners, in a USD16bn deal.
At USD1bn EV, Kantar Media is a comparative tiddler. But H.I.G. clearly see the opportunity to grow the business into something larger.
What happens next?
Outside the US, the global market for TV measurement is carved up mainly between Kantar, Nielsen, GfK (part of NiQ) and Ipsos, with a handful of other small local specialists. So there is an opportunity for Kantar Media to grow global market share while Nielsen tries to put out its domestic fires (they have not yet had their US local-market TV measurement accreditation restored by MRC).
But the US also represents an intriguing opportunity for Kantar Media. Traditionally focused mainly on non-US markets, according to sources, Kantar participated in a competitive process in the US to establish a rival service to the audience measurement business of Nielsen. If Kantar can wrest control of even a part of the lucrative US measurement market away from Nielsen, then the potential to grow the business is large.
And if Kantar Media can also offer reliable non-linear video measurement, then the opportunity is even larger still.
The race is on to create a truly accountable cross-platform and cross-media measurement service. And with it the opportunity to control, as Nielsen did in TV for so long, the advertising currency market.
Can Kantar Media CEO Patrick Behar pull this off? It’s a big ask.
How might they go about it?
M&A seems likely, in order to get scale, and broaden their coverage of platforms, media and geographies.
Matt Ober wrote an interesting piece on small-cap NASDAQ-listed Comscore in December, which is worth a read if you are focused on the sector. But, despite the fact that only last week Comscore announced the launch of unified content measurement within the Comscore platform, it doesn’t appear to truly tick the above boxes for Kantar.
Could Advent and KKR be persuaded to sell the GfK Media Measurement business out of NIQ in advance of a mooted USD10bn IPO? This would give Kantar Media’s increased global scale.
Improving their cross-platform offering would make logical sense in the face of a declining traditional TV market. Acquiring Goldman Sachs-backed ISpot.tv would be transformative, but the valuation is likely too rich, given ISpot.tv’s USD325m raise in 2022. VC-backed Samba TV or TVision might be more affordable.
The saga will continue as Kantar Media and its competitors pursue the opportunity ahead of them.
M&A and Fundraising
Deal chatter
🩺 Scan.com in talks with private credit funds for asset-backed debt raise.
Scan.com is a London, UK-based diagnostic imaging marketplace for private patients, backed by Oxford Capital, Triple Point and Plug and Play.
According to 9fin, Scan.com is in talks with private credit funds to raise a new debt facility backed by its accounts receivable.
The initial facility size is likely to be around USD20m, with the potential to scale to USD100m over time.
Asymmetrix Sector: Healthcare.
📈 Euronext affirms M&A interest in Spanish BME, Nasdaq Nordic.
Euronext is a Euronext-listed, Amsterdam, Netherlands-based market infrastructure group.
According to Reuters, the head of Euronext said that the pan-European stock exchange was seeking to further consolidate markets infrastructure assets in Europe, including a potential acquisition of SIX-owned Spanish stock exchange BME.
Asymmetrix Sector: Financial.
Announced IPOs
🧳 HBX Group announces its intention to float on the Spanish stock exchanges.
HBX Group is a Palma de Mallorca, Spain-based global B2B TravelTech company that owns and operates Hotelbeds, Bedsonline and Roiback, among other brands, backed by Cinven, CPP Investments and EQT.
HBX Group is considering an IPO on the Spanish Stock Exchanges comprising a primary offering of newly issued shares targeting an equity raise of up to €725m, as well as a secondary offering of existing Shares by certain existing shareholders.
Morgan Stanley Europe SE, BofA Securities Europe SA and Citigroup Global Markets Limited are acting as Joint Global Coordinators. Banco Santander, S.A., Barclays Bank Ireland PLC, BNP PARIBAS, Deutsche Bank Aktiengesellschaft and UBS AG London Branch are acting as Joint Bookrunners. Alantra Capital Markets, S.V., S.A. and Banco Bilbao Vizcaya Argentaria, S.A. (in collaboration with ODDO BHF) are acting as Co-Lead Managers.
Asymmetrix Sector: Travel.
🔗 RedCloud sets terms for USD55m NASDAQ IPO.
RedCloud, a London, UK-based open commerce platform, backed by Level39, filed with the SEC to raise USD55m by offering 11m shares at a price range of USD4-USD6.
At the midpoint of the proposed range, RedCloud Holdings would command a fully diluted market value of USD352m.
Roth Capital, Clear Street, and Rosenblatt Securities are the joint bookrunners on the deal.
Asymmetrix Sector: Supply Chain.
Announced M&A
📢 H.I.G. Capital acquired Kantar Media.
H.I.G. Capital, a Miami, Florida, USA-based alternative investment firm, announced the acquisition of Kantar Media, a London, UK-based provider of data and audience measurement, targeting, analytics and advertising intelligence services, from Kantar Group.
The transaction’s purchase price of approximately $1bn is anticipated to be primarily paid in cash, along with certain non-cash consideration, including separation-related investments by H.I.G. Capital, and an earn-out.
Kantar Group was advised by J.P. Morgan and Jefferies, H.I.G. Capital was advised by Morgan Stanley and ING.
Asymmetrix Sector: Advertising.
📈 SIX acquired Swiss Fund Data AG.
SIX, an unlisted public limited company Zurich, Switzerland-based provider of fund data, announced the acquisition of Swiss Fund Data AG, a Zurich, Switzerland-based provider of data on Swiss-registered funds, backed by Asset Management Association Switzerland.
Financial terms were not disclosed.
Asymmetrix Sector: Financial.
📢 The Trade Desk acquired Sincera.
The Trade Desk, a NASDAQ-listed Ventura, California, USA-based advertising technology provider, announced the acquisition of Sincera, a New York, New York, USA-based digital advertising data provider, backed by The Trade Desk, Aperiam Ventures, LiveRamp and NextView Ventures.
Financial terms were not disclosed.
Asymmetrix Sector: Advertising.
🩺 FPE Capital acquired Clearstate.
FPE Capital, a London, UK-based investor, announced the acquisition of Clearstate, a Singapore-based provider of research, consulting and clinical expertise in the medtech and life sciences industries, part of The Economist Group.
Financial terms were not disclosed.
FPE Capital was advised by Plural Strategy, RSM and The Continuum. The Economist Group and Clearstate were advised by Raymond James.
Asymmetrix Sector: Healthcare.
💳 TransUnion acquired majority ownership of Trans Union de Mexico.
TransUnion, a NYSE-listed, Chicago, Illinois, USA-based consumer credit reporting agency, announced the acquisition of Trans Union de Mexico, a Mexico City, Mexico-based credit bureau for individuals, backed by Banorte, HSBC, Scotiabank and Santander.
Cash consideration for the transaction is approximately MXN11.5bn, or USD560m using a USD/MXN exchange rate of 20.53 as of January 14, 2025 based on an enterprise value of MXN16.8bn, or USD818m at the previously mentioned exchange rate.
Asymmetrix Sector: Credit.
🔒 Chainalysis acquired Alterya.
Chainalysis, a New York, NY, USA-based blockchain data platform, backed by Benchmark, Coatue, GIC, Sequoia, Accel, 9Yards Capital, Paradigm and Ribbit Capital, announced the acquisition of Alterya, a Tel Aviv, Israel-based provider of anti-authorized-push-payment (APP) fraud detection, backed by Karatage and FJ Labs.
Financial terms were not disclosed, but the valuation is rumoured to be around USD150m.
Asymmetrix Sectors: Crypto, Cyber Security.
⚓ Lloyd’s List Intelligence acquired Infospectrum.
Lloyd’s List Intelligence, a London, UK-based maritime data, insights and analytics provider, backed by Montagu, announced the acquisition of Infospectrum, a private Oxford, Oxfordshire, UK-based provider of counterparty risk appraisal reports & data, due diligence research and KYC intelligence.
Financial terms were not disclosed.
Asymmetrix Sector: Marine.
🛡️ Moody’s acquired CAPE Analytics.
Moody’s, a NYSE-listed, New York, New York, USA-based provider of data, insights, and innovative technologies, announced the acquisition of CAPE Analytics, a Palo Alto, CA, USA-based provider of property intelligence for insured, real estate, and climate risk, backed by Promus Ventures, Aquiline Capital Partners and Pivot Investment Partners.
Financial terms were not disclosed.
Asymmetrix Sector: Insurance.
Later-Stage / Growth funding
Palo Alto, California, USA-based risk intelligence provider.
Raised USD22m in funding from Deloitte Ventures and Stephens Group as well as existing investors, Citi Ventures, S&P Global, DNS Capital, and USVP.
Asymmetrix Sector: GRC.
⚖️ Eve
Palo Alto, CA, USA-based AI platform for plaintiff law firms.
Raised USD47m in Series A funding led by Andreessen Horowitz (a16z) with participation from Lightspeed Venture Partners and Menlo Ventures.
Asymmetrix Sector: Legal.
💡 Stark
Horley, Surrey, UK-based provider of mission critical energy data, metering and infrastructure services, backed by BGF.
Raised an undisclosed amount in funding from Macquarie Capital.
Rob Morris, Harry Trafford and Steph Westley at EY advised Macquarie Capital.
Asymmetrix Sector: Energy & Commodities.
Guildford, Surrey, UK-based nature data and intelligence data platform.
Raised USD25m in funding from new investors include Just Climate, EDF Pulse Ventures and Monaco ReOcean Fund with participation from existing investors 2150, BNP Paribas, Ananda Impact Ventures and SWEN Blue Ocean.
Asymmetrix Sector: Environment.
London, UK-based carbon ratings agency.
Raised USD32m in funding led by Temasek-founded GenZero, with participation from the Japan Airlines, Translink Innovation Fund, EDF Pulse Ventures, Hitachi Ventures, Illuminate Financial, Intercontinental Exchange (ICE), Molten Ventures, Qima, and Quantum Innovation Fund.
Asymmetrix Sector: Energy & Commodities.
🔒 BforeAI
New York, NY, USA-based predictive attack intelligence and digital risk protection solution.
Raised USD10m in Series B funding led by Titanium Ventures, including existing investors SYN Ventures, Karista and Addendum Capital.
Asymmetrix Sector: Cyber Security.
🩺 Truveta
Bellevue, Washington, USA-based EHR Data & Analytics provider.
Raised USD320m in Series C funding from Illumina and Regeneron, along with 17 health systems such as Northwell Health and Trinity Health.
Truveta has a valuation exceeding $1bn.
Asymmetrix Sector: Healthcare.
Early-Stage
🖥️ Alium
New York, New York, USA-based software buyer intelligence company.
Raised USD7m in funding from Greycroft and Primary.
Asymmetrix Sector: Technology.
Cambridge, MA, USA-based healthcare AI company.
Raised an undisclosed amount of funding from MultiCare Capital Partners.
Asymmetrix Sector: Healthcare.
⚠️ LetsData
Dover, Delaware, USA-based InfoOps detection platform.
Raised USD1.6m in pre-seed funding from investors including SMOK Ventures, Wayra, Tilia Impact Ventures, 1991 Ventures, Google’s Ukraine Support Fund and Startup Wise Guys.
Asymmetrix Sector: GRC.
🛒 DAASH
San Francisco, California, USA-based predictive commerce intelligence platform for retail brands.
Raised USD5.5m in funding led by Bullpen Capital with participation from GFT Ventures as well as from returning investors Silicon Road Ventures and Red Bike Capital.
Asymmetrix Sector: Retail.
📧 If we have missed your deal, or you would like to talk, please email us at a.boden@asymmetrix.info.