Ascential acquires Clavis Insight for initial consideration of $119m

Global business-to-business information and events company Ascential plc (formerly known as the Top Right Group), has announced the acquisition of Clavis Insight for an initial cash consideration of $119m paid in December 2017, plus future earn outs payable over three years.  The deal was completed on 27 December 2017. Clavis is a specialist company in eCommerce analytics, with proprietary technology enabling consumer product companies to track and optimise the performance of their products across retailer websites. Clavis customers include large consumer product companies, such as P&G, Nestle, Unilever and L’Oreal. Clavis will join Ascential’s Information Services division. Clavis employs 170 people, including 100 in Dublin, with hub locations in the US, UK, France and China serving a global customer base. In the year to 31 December 2016, Clavis generated unaudited revenue of $13m and an EBITDA loss of $7m.  Gross assets at 31 December 2016 were $19m.  Revenue is expected to grow to US$17m in the current financial year ended 2017 and Clavis is expected to break even in 2018. Clavis benefits from a high level of recurring revenue with 95% of total revenue being subscription-based. The total potential consideration, including initial consideration and earn out payments, is capped at $219m in the event that extremely stretching annualised recurring revenue levels are reached. The acquisition, which will be funded from cash reserves and existing borrowing facilities, is expected to be enhancing to Ascential’s earnings per share in the second full year of ownership. Ascential powers the global trend forecasting service WGSN, environmental risk data business Groundsure, e-commerce analytics provider One Click Retail, the Cannes Lions festival for the branded communications industry, the world’s premier payments and financial services congress Money20/20 and MediaLink, a US-based advisory and business services firm.