GlobalData has announced a Group reorganisation and entered into a transformational investment agreement with Inflexion that values c.36%-50% of the DATA business (Revenue/ EBITDA LTM contribution) at almost the entirety of GlobalData’s current market cap. We have previously outlined that DATA shares are undervalued when compared to US listed peers (e.g. Gartner, Reuters) that trade in excess of 25x next year’s EV/EBITDA. However, this morning’s announcement highlights the material valuation gap between DATA’s current valuation, and what private equity have ascribed to a minority shareholding in the Group’s Healthcare division. For GlobalData, the £434m net cash proceeds will move the business to a net cash position and provide flexibility for accelerated value-creating M&A. We leave our forecasts unchanged pending the expected close of the transaction in Q2’24, but note the power of the Group’s platform (that can be leveraged for M&A) and management’s track record in executing M&A.
