Carousel Seals Mergent Deal
The acquisition of the financial data provider represents the fifth deal out of Carousel’s third fund.
July 18, 2008
Charlotte, N.C.-based Carousel Capital completed its previously announced deal to acquire financial data companies Mergent, Inc. The firm paid approximately $93.5 million for the company, which was formerly owned by Xinhua Finance Limited.
According to William Hobbs, a partner at the firm, the deal represents the fifth new investment out of Carousel’s latest fund, its third, which closed in September with $210 million of capital. Other deals include buyouts of surgical instruments maker Brasseler USA, in February, and tool-maker Jameson, in June of last year.
This latest transaction for Mergent is in line with previous activity, as Carousel in 2006 invested in AGDATA, a provider of outsourced database management serving the agriculture and animal health industries.
Mergent, meanwhile, was originally founded in 1900 as the original publisher of Moody’s securities manuals. It currently operates the longest continuously collected database of fundamental information on domestic and international companies, including pricing, terms and conditions data related to fixed income and equity securities. The company also produces licensed products that are offered by third-party investment management firms and it operates the index calculation platform used to administer index rules and distribute real-time pricing data.
Carousel acquired Mergent alongside the current management team, led by chief executive Jonathan Worrall.
While the deal market has slowed considerably in recent months, Hobbs noted that Carousel has an upbeat view on the deal market.
“Our mindset is to be aggressive right now, but with companies that have recession resistant qualities, given what’s going on with the economy.”
He notes that the Fort Mill, S.C.-based Mergent would qualify. “We’re anticipating that the company will see growth across all of its product lines, especially from its index products,” Hobbs noted.
Goldman Sachs Specialty Lending Group provided financing on the deal, while Latham & Watkins served as legal counsel to Carousel.
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