Euromoney Institutional Investor PLC (“Euromoney” or “the Group”), the global B2B information services provider of price discovery, essential market intelligence and events, has announced the acquisition of WealthEngine, Inc. (“WealthEngine”) for $14.5m.
WealthEngine is a SaaS platform providing data-driven intelligence and predictive analytics to wealth managers, luxury brands and not-for-profit organisations. It is a workflow tool which profiles US individuals and is used by its clients for prospecting potential donors or customers. Revenues are derived predominantly from subscriptions, which attract high renewal levels.
The acquisition of this 3.0 business adds scale to the Group’s People Intelligence business, which now comprises WealthEngine, Wealth-X and BoardEx. WealthEngine is complementary to the recently acquired Wealth-X, whose database provides comprehensive profiles for more in-depth screening of, and intelligence on, high and ultra-high-net-worth individuals.
When combined with the relationship mapping capabilities of BoardEx, which help clients identify ways to reach potential customers through a proprietary “relationship map” as well as providing up-to-date information about targets’ professional lives, the Group now has full coverage across the wealth intelligence value chain, which is a growing information-services market.
WealthEngine’s Annual Contracted Value (“ACV”) of subscriptions and pro-forma EBITDA1 for the 31 December 2020 financial year are expected to be $15.0m and $2.0m respectively.
This highly complementary acquisition is expected to enhance the operating profit margin of People Intelligence and deliver accelerated growth over the medium-term. As a result, the acquisition is expected to be earnings accretive for Euromoney and deliver ROI above WACC in the current financial year.
James Lavell, CEO People Intelligence, Euromoney, said: “The acquisition of WealthEngine is a great addition to the Group and supports our strategy by adding further scale to our 3.0 People Intelligence business. It brings leading technology, workflow solutions and must‐have data, which, when combined with Wealth-X and BoardEx, will enhance significantly the value we provide customers.”