Unlock the Editor’s Digest totally free
Roula Khalaf, Editor of the FT, selects her favorite tales on this weekly publication.
The chief government of Argus Media is taking a majority stake within the power and commodity information supplier as personal fairness group Hg sells its funding.
Adrian Binks, who has led Argus since 1984, will grow to be the majority owner of the corporate whereas current investor General Atlantic will find yourself with a “large minority” stake, in response to an announcement on Monday.
Binks and General Atlantic are each buying the shares from Hg, which is promoting its full stake. Hg purchased its share in Argus in 2020 from General Atlantic, which first invested within the firm in 2016 in a deal valuing the enterprise at about £1bn together with debt.
The newest deal will give Argus an enterprise worth of roughly $4.6bn, in response to two individuals conversant in the matter. The firm didn’t publicly disclose monetary phrases of the deal or touch upon the valuation.
Argus, which began life as a weekly publication within the 1970s, mentioned it had greater than doubled in dimension since General Atlantic first invested within the enterprise and elevated income by 17 per cent in 2023, yr on yr. It flagged “particularly strong momentum in energy transition products”, which grew 46 per cent.
Financial information suppliers have attracted billions of {dollars} from buyers in recent times, with backers drawn to their usually predictable subscription-based revenues. Last yr personal fairness group Francisco Partners agreed to purchase monetary information supplier Macrobond for nearly €700mn, whereas in 2022 Permira gained management of Reorg in a deal that valued the distressed debt and chapter info supplier at about $1.3bn.
The transition in direction of cleaner power sources has additionally created a possible improve in demand for correct pricing information on commodities.
“Argus serves its customers around the world by navigating the challenges presented by the move to a sustainable future, which involves both traditional hydrocarbon and energy transition commodities,” mentioned Binks in an announcement. “Our mission to bring transparency to these markets remains unchanged.”
London-based Argus supplies greater than 11,000 prospects with information and worth info on power and commodity markets. It was based within the 1970s by Jan Nasmyth, a former Treasury official and British Army officer, as a weekly publication known as Europe-Oil Prices protecting European petroleum merchandise. Argus subsequently grew by buying different corporations and counts Platts, a part of credit score scores firm S&P, amongst its rivals.
General Atlantic had beforehand explored promoting a part of its stake in Argus, however talks a couple of potential deal that might have valued the enterprise at £2bn collapsed in 2019.
On Monday Hg Capital Trust, an funding firm managed by Hg, mentioned the brand new transaction valued its personal stake in Argus at about £52mn.
This article has been amended since publication to make clear that Hg Capital Trust’s funding in Argus Media was valued at round £52mn, not Hg’s general funding.
