Exclusive: Hg weighs sale of $1.9 bln financial data firm FE fundinfo
The London-based FE fundinfo could generate around 70 million pounds ($93.2 million) in earnings before interest, taxes, depreciation, and amortisation this year and could fetch more than 20 times this in a sale.
That would make it worth more than 1.4 billion pounds, one of the sources said. All three sources spoke on condition of anonymity because the talks are private.
They said no final decision had been taken and preparations were at an early stage. Although they expected Hg to proceed with an auction towards the end of the year, the timeline could slip into next year.
Hg and FE fundinfo declined to comment.
FE fundinfo, which provides investment data and performance analysis to asset managers and other financial institutions, is expected to attract attention from global exchange and wealth management groups as well as private equity firms, one of the people said.
In a series of deals over recent years, companies that provide specialised financial technology and data to clients including banks, asset managers and investment groups, have changed hands at elevated valuation multiples.
Financial software provider SS&C Technologies in July bought Calastone for about 766 million pounds, and UK data group Preqin was sold to BlackRock (BLK.N), opens new tab last year for 2.55 billion pounds.
A possible sale of FE fundinfo also highlights how private equity, after sitting on the sidelines of dealmaking, has again become active, helping drive global M&A to a $2.6 trillion peak year-to-date.
The company was created in 2018 through the merger of three companies FE, F2C and fundinfo, the same year that Hg became an investor.
It has made five acquisitions in the last year, including data firm Fundipedia in May, UK-based Lunar AI in April and German fintech specialist Dericon last year, all for undisclosed amounts.
FE fundinfo connects fund managers and fund distributors, which it says enables them to share and act on trusted information to make investment more efficient.
($1 = 0.7519 pounds)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
3 minutes ago
- The Independent
Gatwick ‘optimistic' minister will approve expansion plan
Gatwick airport's outgoing boss said he is 'optimistic' the airport's expansion plan will be approved. Chief executive Stewart Wingate claimed the benefits from the West Sussex airport bringing its emergency runway into routine would last 'for generations'. Transport Secretary Heidi Alexander has a deadline of October 27 to decide whether to give the go-ahead to the proposal. Gatwick submitted a modified development consent order (DCO) application after the Cabinet minister announced in February she would back the scheme if adjustments were made, covering issues such as noise mitigation and the proportion of passengers who would travel to and from the airport by public transport. The project would see Gatwick move the emergency runway 12 metres north, enabling it to be used for departures of narrow-bodied planes such as Airbus A320s and Boeing 737s. This would increase the airport's capacity by around 100,000 flights a year. Gatwick's plan also involves remodelling and replacing existing taxiways – which connect runways to terminals, hangars and other facilities – extending both terminals, and installing new aircraft gates. Local campaigners opposed to expansion are concerned about the impact on surface transport, noise, housing provision and wastewater treatment, but the airport insists it has conducted 'full and thorough assessments' of those issues. Mr Wingate said: 'The critical final decision on our northern runway plans is just weeks away and follows a rigorous and lengthy planning process. 'I remain optimistic the Secretary of State will approve our privately-financed, shovel-ready plans to unlock further growth for London Gatwick and the UK economy, generating new jobs, trade and tourism opportunities for generations to come.' Gatwick says its plans would create £1 billion per year in economic benefits and generate an additional 14,000 jobs. Mr Wingate will start his new role as managing director for UK airports for Vinci Airports and Global Infrastructure Partners on September 1, overseeing the future development and strategic direction of Gatwick, Edinburgh and Belfast International airports. His replacement at Gatwick will be Pierre-Hugues Schmit, currently Vinci Airports's chief commercial officer. Gatwick announced on Thursday its underlying earnings for the first six months of the year were £262 million.
The Independent
3 minutes ago
- The Independent
British Gas owner takes stake in Europe's biggest LNG terminal in £1.5bn deal
National Grid has agreed to sell Europe's largest liquefied natural gas terminal to British Gas owner Centrica and Energy Capital Partners, in a deal worth £1.5 billion. The two firms will be acquiring the Isle of Grain terminal in Kent. Grain imports and stores gas from around the world, and connects it to the European energy market. Its customers include Centrica, Shell, and Qatar Energy. It supplied some 15% of the UK's gas demand last year, but this is forecast to swell to about 60% by 2050. After taking into account some £1.1 billion worth of project finance debts on Grain's balance sheet, Centrica's equity investment totals about £200 million, it said. National Grid, which runs much of Britain's electricity grid, had been looking to sell the asset as part of broader efforts to offload parts of its portfolio to help fund investment plans. Centrica chief executive Chris O'Shea said: 'The Isle of Grain terminal is a strategic asset that will support the UK's energy security for many decades to come, keeping energy flowing reliably and affordably to households and businesses across the country as we transition to net zero.' The acquisition comes soon after Centrica announced it was investing £1.3 billion for a 15% stake in the new Sizewell C nuclear power plant in Suffolk. Mr O'Shea said that, combined with the Grain acquisition, 'demonstrates the attractiveness of the UK as an investment location underpinned by supportive government investment policies'. The acquisition is expected to complete during the final three months of 2025, subject to it being approved by regulators.
.jpeg%3Ftrim%3D0%2C0%2C0%2C0%26width%3D1200%26height%3D800%26crop%3D1200%3A800&w=3840&q=100)
The Independent
3 minutes ago
- The Independent
Business news live: UK economy grows in June - but jobs and inflation look ‘troublesome for household budgets'
The UK economy surged back to growth in June after consecutive contractions in April and May - but overall the second quarter of the year showed the economy grew far less than it did in the first. A total 0.3 per cent GDP growth was better than some analysts were expecting, but is still slow movement overall given the government's plan to kickstart businesses and get the nation firing on all cylinders. Meanwhile, it's A Level results day for college students in the UK - meaning lots of university-related financial matter coming your way today as well. Stock markets rose in the US but fell in Asia overnight, with the FTSE 100 following the latter on a downward path as trading started on Thursday. Aviva and the Admiral Group are among those reporting their latest financials today.
