BY Richard Summerfield
An affiliate of private equity firm Platinum Equity is to acquire public relations and software company Cision Ltd in a deal worth $2.74bn.
Under the terms of the deal, which has been unanimously approved by Cision’s board members, Platinum Equity will acquire all outstanding shares of Cision for $10 per share in cash, representing a 34 percent premium over Cision’s stock over a 60-day period ending on 21 October, the day before the deal was announced.
The deal, which is expected to close in Q1 2020, will see Cision become a wholly owned entity of the Platinum Equity affiliate. There had been rumours that Cision had been in negotiations with potential new private equity owners since around March.
“This transaction will provide shareholders with immediate and substantial cash value, while also providing us with a partner that shares in our commitment to customers and employees and can add strategic and operational value,” said Kevin Akeroyd, chief executive at Cision. “Based on our extensive engagement with Platinum over the past several months, we are confident that Platinum's support will enable Cision to execute on its strategy and next phase of growth.”
“Cision has a long history of leadership providing software and services to public relations and marketing communications professionals and has developed a growing portfolio of earned media management offerings for the world's leading brands,” said Jacob Kotzubei, a partner at Platinum Equity. “Platinum looks forward to nurturing Cision's core business, supporting and anticipating the diverse needs of the company's customers, and driving new opportunities for innovation. As a private company, Cision will be able to make strategic investments for sustainable and profitable growth, while remaining agile and focused on operational excellence. We are excited to partner with Cision's management team as it embarks on this new chapter.”
According to a statement announcing the deal, Cision may solicit alternative acquisition proposals from third parties during a ‘go-shop’ period from the date of the agreement until 12 November 2019.
News: PR Newswire owner Cision to be taken private for $2.74 billion