# Euromoney adds further scale to its People Intelligence pillar with the acquisition of Wealth-X

- Link: https://www.directorstalkinterviews.com/euromoney-adds-further-scale-to-its-people-intelligence-pillar-with-the-acquisition-of-wealth-x/412798871
- Published: 2019-11-25T07:30:17+00:00
- Author: Amilia Stone

**Euromoney Institutional Investor** (LON:ERM), the global information business 
providing essential B2B information to global and specialist markets, has announced
the acquisition of 100% of Wealth-X Pte. Ltd.

Wealth-X is the market-leading provider of data-driven intelligence on the world’s
wealthiest individuals. The platform’s proprietary database is embedded in the workflow
of banks, wealth managers, luxury brands and non-profit customers. It is used for
business development and Know Your Client activities.

The acquisition adds a further 3.0 information services business to the portfolio
within the Financial & Professional Services (FPS) division.

Wealth-X is expected to deliver a revenue CAGR of 13% for the 3 years to 31 December
2019. Unaudited revenue and pro forma EBITDA^([[1]](https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/ERM/14320637.html#_ftn1))
for the 2019 financial year is expected to be $12.7m and $0.8m respectively. Revenues
are derived predominantly from selling subscriptions which have high renewal rates.

Wealth-X is highly complementary to BoardEx, a market-leading executive profiling
and relationship mapping business acquired by Euromoney in February 2019. Wealth-
X provides intelligence on business development opportunities within the high net
worth and ultra-high net worth markets and BoardEx facilitates the relationship 
network to connect these individuals. As a result, the acquisition is expected to
accelerate BoardEx’s expansion into the fast-growing Wealth Management sector.

Wealth-X and BoardEx share complementary technologies and people intelligence processes.
Both products are directly integrated into a client’s CRM system and share a common
roadmap for future development. Under Euromoney’s ownership there are further opportunities
to increase scale and accelerate growth.

Euromoney will pay $20.4 million in cash for Wealth-X representing a 1.6x multiple
of 2019 revenue and 25.6x multiple of 2019 EBITDA. This is expected to reflect a
multiple of below 12x 2020 EBITDA. The acquisition is expected to enhance group 
revenue growth and be earnings accretive for Euromoney in its current financial 
year and deliver a ROI above its WACC in the first full financial year.

> **Jeff Davis, CEO, Financial & Professional Services, Euromoney Institutional 
> Investor, said**: “The acquisition of Wealth-X is a great addition to Euromoney’s
> portfolio and supports our strategy to evolve towards a 3.0 information services
> business. Wealth-X is a leading brand, providing workflow solutions and must-have
> information to the fast-growing Wealth Management market, as well as luxury and
> non-profit sectors. Wealth-X is highly complementary to our existing portfolio
> and along with BoardEx, it will create further scale within our People Intelligence
> offering and accelerates the growth of both businesses”.

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