CCMP-Backed Infogroup Nearing End of Sale Process
December 07 2016 - 1:33PM
Dow Jones News
By Laura Cooper
Infogroup Inc., a CCMP Capital Advisors-backed provider of data,
analytics and marketing services, is in the late stages of a sale
process run by Bank of America Corp., said people familiar with the
matter.
The people said a sale of Infogroup could bring in $700 million
to $800 million if a deal is reached.
They added that the Papillion, Neb., company -- which has
attracted interest from private-equity firms -- is projected to
generate around $70 million in 2016 earnings before interest,
taxes, depreciation and amortization.
Infogroup provides data and software-as-a-service products to
help companies increase sales and customer loyalty. The company's
clients include large and small companies as well as government,
academic and nonprofit entities.
The business includes five units: Infogroup Media Solutions;
Infogroup Data Licensing; Infogroup Targeting Solutions; Infogroup
Local Marketing Solutions; and Yes Lifecycle Marketing.
Infogroup's customers include large and small companies as well
as government, academic and nonprofit entities.
CCMP in 2010 took Infogroup private in a deal that was valued at
$635 million, WSJ Pro Private Equity previously reported. Bank of
America at the time committed debt financing and served as a
financial adviser to CCMP on the transaction.
Since the company was taken private, it has sold a number of its
divisions to private-equity firms and their portfolio companies.
GTCR-backed Cannondale Investments in 2012 acquired Infogroup's
subsidiary known as OneSource Information Services Inc. (OneSource,
a business information provider, changed its name to Avention Inc.
in 2014.) In 2011, Infogroup sold its market-research division, ORC
International Inc., to Lake Capital Management.
In addition to divesting assets, Infogroup also made at least
one acquisition under CCMP's management. The company acquired
Specialized Fundraising Services Inc., a provider of
direct-marketing services to the nonprofit space, in 2014,
according to a news release at the time.
Infogroup generated 2009 Ebitda of $85 million before it was
taken private by CCMP, according to data provided by S&P
Capital IQ. The company currently has debt totaling $334.5 million,
according to data provided by FactSet.
CCMP, of New York, invests in the consumer, industrial and
health-care sectors. The firm closed CCMP Capital Investors III LP
in 2014, raising $3.6 billion.
Write to Laura Cooper at laura.cooper@wsj.com
(END) Dow Jones Newswires
December 07, 2016 13:18 ET (18:18 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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