GlobalData (DATA), TinyBuild (TBLD) and Capital (CAPD)
Shares in GlobalData (DATA) jumped by over a fifth this morning after the group reported a “transformational investment agreement” with a private equity firm. Inflexion is poised to acquire a 40 per cent stake in GlobalData’s healthcare division, which it valued at £1.12bn or 22x divisional Ebitda. When the deal was struck, the group’s total market capitalisation stood at just £1.35bn.
GlobalData expects to receive net cash proceeds of £434mn, which will “provide flexibility for accelerated value-creating M&A”. Analysts at Investec said the agreement – which is expected to close in the second quarter of next year – was “transformational”.
The healthcare business generates about 36 per cent of GlobalData’s revenue. JS
Read more: Get defensive with a UK data play
TinyBuild CEO underwrites capital raise
Banks and other financial institutions often underwrite equity raises so to give a guarantee to others taking part in the issue the whole transaction won’t fall apart. TinyBuild (TBLD) has gone for a more radical approach.
The video game developer has seen its balance sheet and market capitalisation crumble this year, with its share price falling 96 per cent. To keep operating it has announced a $10mn (£7.9mn) raise, almost double the current market cap, fully underwritten by chief executive Alex Nichiporchik. This is the same chief executive who sold £55.8mn in shares in the 2021 IPO. Shareholders may be more focused on the massive dilution and complete wipe-out compared to the IPO price of 169p a share.
Those same investors will have to support Nichiporchik taking up to a 59 per cent stake in the company through the raise, which will also dilute their holdings significantly. Atari is also putting $2mn into TinyBuild. The company, or its Nomad Berenberg, flagged the realities of the arrangement. “The ownership levels of the CEO may have the effect of delaying, deferring or preventing a change of control, merger, consolidation, takeover or other business combination or discouraging a potential acquirer from making a tender offer or otherwise attempting to obtain control of the company, which in turn could harm the trading price of the shares,” TinyBuild said. AH
