GlobalData sells 40% stake in Healthcare division to Inflexion for £446m

LONDON, UK: GlobalData, a leading provider of data and analytics, has announced a major reorganisation of its business and a strategic partnership with Inflexion, a private equity firm.

The deal will see Inflexion acquire a 40% stake in GlobalData’s Healthcare division, which offers insights and intelligence on the pharmaceutical, medical device, and biotechnology sectors. The transaction values the division at £1,115m, or 22 times its earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the 12 months ending June 2023.

The Healthcare division accounted for 36% of GlobalData’s revenue for the same period, and generated £50.4m in EBITDA. GlobalData said the deal will allow it to unlock the full potential of the division, which has a strong growth outlook driven by the increasing demand for healthcare data and analytics.

GlobalData will retain a 60% stake in the Healthcare division, which will remain a fully consolidated subsidiary of the Group. GlobalData expects to receive net cash proceeds of approximately £434m from the deal, which it plans to use for further acquisitions and investments across its other two divisions: Consumer and Technology.

The Consumer division provides data and insights on consumer behaviour, preferences, and trends, while the Technology division covers the digital transformation, innovation, and disruption across various industries.

GlobalData said the reorganisation will enable it to focus on its core strengths and deliver more value to its customers. The Group also announced a new growth plan, which aims to achieve a compound annual growth rate (CAGR) of 15% in revenue and 20% in EBITDA over the next five years.

The transaction is subject to customary closing conditions and regulatory approvals, and is expected to close during the second quarter of 2024.

Mike Danson, CEO of GlobalData, said: “This is a significant milestone in GlobalData’s evolution, and we are delighted to welcome Inflexion as a shareholder in our Healthcare division. The investment highlights the significant value in our unique data platform and gives us the flexibility to launch a more ambitious approach to growth investment across our portfolio. We believe that we can create substantial value for all shareholders and accelerate GlobalData’s profitable growth over the coming years.”

David Whileman, Partner and Head of Partnership Capital at Inflexion, said: “GlobalData is renowned for creating data and analytical insight for its clients across many verticals. We are really excited about our partnership with them to carve out and expand an independent Healthcare division. This is a tried and tested strategy we’ve successfully pursued many times and another example of Inflexion being the leading minority investment partner.”

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