Buyout shop BC Partners emerged as the winning bidder for Pearson’s Mergermarket group after agreeing to pay $624 million.
BC Partners outbid not only PE rival Warburg Pincus, which was working with Mergermarket founder Caspar Hobbs, but also Condé Nast Chairman Si Newhouse Jr. and his sons.
The Newhouse family owns the American City Business Journals chain and would have added Mergermarket to that stable.
They attended management meetings and planned to use personal funds to pursue a bid, according to a source close to one of the bidders.
“They were not as quick with their due diligence” as the PE firms, the source said.
A Condé spokeswoman didn’t return an e-mail for comment.
Ratings firm Fitch also made a bid, the source said.
Mergermarket is selling for 16 times its annual pre-tax income. The group makes most of its money from selling subscriptions to Debtwire, which focuses on the junk bond market, and Mergermarket, which reports on deal strategy. The business also includes Dealreporter.
While far from glamorous, the company has hundreds of reporters worldwide that break news on the more arcane areas of finance.
Pearson, which is focusing on education services, is selling the business for more than double what it paid for the start-up in 2006.