LONDON (Reuters) - Euromoney (ERM.L) agreed on Monday to buy specialist news and data firm Wealth-X for $20.4 million in cash to expand its portfolio of business-to-business information providers.
Wealth-X focuses on the world’s wealthiest individuals, providing data-driven intelligence to banks, wealth managers, luxury brands and non-profit organizations among others.
Founded in 2010, Wealth-X reported revenues of $12.7 million in its last financial year with core earnings of $800,000. It has offices across North America, Europe and Asia, and relies on high renewal subscription rates.
Euromoney said the deal would boost earnings in its current financial year, adding the purchase price represented a multiple of 1.6 times Wealth-X’s revenue and 25.6 times its core earnings for its last fiscal year.
London-based Euromoney aims to extract synergies between Wealth-X and BoardEx, an executive profiling and relationship mapping platform which was recently bought from parent company TheStreet along with The Deal.
Both products share complementary technologies, being directly integrated into their clients’ customer relationship management (CRM) systems.
At 0820 GMT, Euromoney shares were up 0.2% at 1,280 pence.
Reporting by Pamela Barbaglia; Editing by Jason Neely and Mark Potter