EP-backed trade player OEConnection stalks Infomedia
It comes as Infomedia spoke quietly to a few parties, before a third, TA Associates, denounced the M&A situation with an indicative bid of $1.70 per share.
TA Associates has entered into Infomedia’s largest shareholder, Viburnum Funds, in what appears to be a joint bid, triggering the disclosure of a cooperation and process agreement and a subsequent indicative offer for the company.
There is an open data room, although it is understood that it only has limited information.
Analysts have been trying to guess who else might circle Infomedia, knowing that a motivated commercial buyer will often outbid a PE suitor, such as TA Associates.
E&P analysts estimate that a PE suitor could pay $1.80 to $1.90 per share for Infomedia and still get a 20-25% IRR, assuming an exit in fiscal year 2025.
Bell Potter analysts called TA Associates’ aggregate price of $1.70 per share “reasonable.”
The suitors came in at a low for Infomedia, at least in terms of its share price. E&P said the stock was trading at multiples not seen in more than four years.
Shares closed at $1.65 on Friday, valuing the group at $620 million on a market capitalization and 26.4 times forward earnings per share. It also implied 3.7 times forward earnings on an EV-to-sales basis.
Credit Suisse and Ashurst advise Infomedia. Goldman Sachs and Allens are in the camp of TA Associates.