The division, consisting of CEIC and EMIS, is being sold to a consortium of CITIC Capital Partners Management Limited, the private equity arm of CITIC Capital Holdings Limited, and Caixin Global Limited, for an equity value of $180.5 million.
The sale is expected to complete by the end of April 2018, to allow for a smooth transition of the business to the Consortium. The consideration will be received in cash on completion.
Headquartered in Hong Kong, GMID is a leading provider of macro-economic, company and industry intelligence on emerging markets with a strong customer presence in China, India, Brazil and Central and Eastern Europe, as well as in developed markets.
For the year ended 30 September 2017, GMID reported an operating profit of £11.9 million ($15.1 million), as disclosed in the notes to Euromoney’s 2017 annual accounts. GMID’s gross assets at 30 September 2017 were £45.3 million.
The sale proceeds, net of transaction costs and tax, are expected to be approximately $145 million. This will leave Euromoney in a net cash position at completion and will provide Euromoney with further capital to recycle towards its main investment themes, says the company.
Andrew Rashbass, CEO of Euromoney, said: “This transaction is another example of Euromoney’s strategy in action: where a good business is not strategic, we will sell it and recycle capital towards our main investment themes like price discovery, asset management and telecoms. CITIC Capital and Caixin will provide an excellent home for the business, which Aloisio Parente and the whole team have done a fantastic job developing as part of Euromoney. I am confident that the business will thrive under its new owners.”
Aloisio Parente, CEO of GMID, added: “I am tremendously excited about the opportunities that this transaction will afford to our business, customers and staff. Both CEIC and EMIS have traditionally had a strong presence in and understanding of the key developing markets. I am certain that the relationship with CITIC Capital and Caixin will help us to further enhance the value and reach of our services in all parts of the world.”
Yichen Zhang, Chairman and CEO of CITIC Capital, said: “We are very excited to make this investment in CEIC and EMIS, which are world-class platforms for macro-economic and business information. Together with Caixin, we look forward to working with the management team to continue growing the business and developing its global customer base.”
Shuli Hu, Publisher of Caixin Media, Chairwoman of Caixin Global, said: “We are optimistic about GMID’s business and future. Caixin will further leverage the rising global influence of China’s economy, and combine state-of-the-art technology with its authoritative information service and data offerings. We will join forces together with GMID to provide indispensable data and insight for overseas and domestic financial industry professionals and stakeholders.”
