Investment, Private Equity

CITIC Capital, Caixin Global To Acquire Euromoney Unit For $180.5M

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An investor corsortium led by funds managed by CITIC Capital Holdings Ltd. and Chinese media firm Caixin Global has reached an agreement to acquire a unit of London-listed Euromoney Institutional Investor PLC for US$180.5 million, the firms announced today.

The Chinese investor group is buying the Global Markets Intelligence Division of Euromoney Institutional Investor PLC, Europe’s largest business and financial magazine publishers with interests in financial publishing and event organization.

The Global Markets Intelligence Division (GMID) covers financial information and business data on emerging markets including China, India and Brazil accumulated over ten years. The products have 15 languages and are used by global financial institutions, consultants, multinational corporations, research institutes and others.

The Chinese investors are planing to integrate the financial data products of GMID with their own resources in China to produced more customized data products to an international audience. The deal is expected to be completed by the end of April 2018.

"In the future, we will work closely with the company’s management to leverage our advantages and actively expand globally as well as in the Chinese markets," said Yichen Zhang, chairman and CEO of CITIC Capital, in the announcement.

Euromoney started explore strategic options for the GMID division, which was considered non-core business, last summer. GMID is headquartered in Hong Kong, while CITIC Capital and Caixin Global both have operations in major cities across the region including Beijing, Shanghai and Hong Kong.

"We are very optimistic about the business and future development of (the business we are buying). With the increasing global influence of the Chinese economy, Caixin will look for and seize the opportunity to integrate cutting-edge technologies and The combination of authoritative information services and data. Together, we will work together to provide accurate and in-depth data and insight to both financial practitioners and the broader financial community," said Shuli Hu, chairman of Caixin Global, in the announcement.

Founded in 2002, CITIC Capital manages over US$22 billion across private equity, real estate, structured investment and finance, and asset management businesses.

Caixin Global is the English language outlet of Caixin Media, an influential business media organization in China. Chinese media sector-focused private equity firm CMC Capital invested and took a stake of Caixin Media in 2013, while CMC’s chairman Li Ruigang was appointed as chairman of Caixin Media. Tencent was also identified by Caixin Media as one of its early investors.

Alibaba Group was rumored to be interested in taking a stake of Caixin Media, but there was no confirmation of such investment almost two years after the speculation surfaced in March 2016.

Update on April 30, 2018: The companies announced that the deal has been completed.

(Hong Kong, 30 April 2018) CITIC Capital Holdings Limited (“CITIC Capital”) announced today that a consortium led by its private equity arm and Caixin Global has successfully completed the acquisition of Global Marketing Intelligence Division (“GMID”) from Euromoney Institutional Investor PLC (LSE:ERM) for an equity value of USD180.5 million. After the acquisition, CITIC Capital and Caixin Global along with experienced management team from GMID will jointly manage the company’s affairs.

GMID is a top-tier international financial information database operator. Its two main units CEIC and EMIS provide global financial information and data from the macro and micro perspectives, respectively, with a focus on key financial and business data for emerging markets.

Yichen ZHANG, Chairman & CEO of CITIC Capital, said: “We are delighted to join forces with Caixin Global to invest in this valuable and critical resource for emerging markets financial information. We will work together with GMID to expand and deepen its product offering, particularly that which is relevant to China, to better service the needs of its global customer base. We further aim to support management in delivering robust growth through our strong network and resources. This acquisition also represents one pillar in our buyout strategy which is focused on internet-based services businesses."

This is the fourth carve out deal for CITIC Capital, to help companies restructure and carve out business from parent company to unlock full potential of the acquired assets. CITIC Capital will continue its investment and focus on domestic and overseas buyout opportunities particularly in the consumer and services industry.


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