Two parties circle Infomedia following TA Associates takeover...

Two parties circle Infomedia following TA Associates takeover bid

Two parties other than TA Associates are understood to be in a data room running the ruler over Infomedia, with one group understood to be a buyout fund and another an industry player.

It comes after TA Associates emerged with a bid late on Friday of $1.70 a share for the business, which values it at $638.9m.

The company is working with Credit Suisse and law firm Ashurst to fend off suitors.

The offer is a 32.8 per cent premium to its closing share price on May 12 of $1.28.


Infomedia supplies online parts selling systems, service quoting, data insights, e-commerce and data analysis and information research for automotive and lubricant industries.

Automotive aftermarket dealers buy its parts selling platform and electronic parts catalogue to carry out vehicle repairs and its remote monitoring of vehicles operations offer assistance in retaining its customers.

One theory is that US-based business Snap-on may be the trade player in the data room.

This is given that within Snap-on’s, business which is predominantly high end tools and equipment for professional use in the transportation industry, it also supplies the same services as Infomedia.

TA Associates, which is working with Goldman Sachs, has entered into a co-operation agreement with shareholder Viburnum Funds for a 14.5 per cent per cent interest to act in concert for a buyout proposal, which is conditional on exclusive due diligence.

Infomedia has told the market it was in discussions with other interested parties and that it would consider the proposal along with other expressions of interest.

Viburnum has agreed to roll into TA Associates bid and is legally obliged to vote against other offers.

Some believe that an offer of $1.70 per share would likely be beaten by others, given that Infomedia has $60m of cash and was trading at 6.5 times its earnings before interest, tax, depreciation and amortisation before the offer emerged.

Adding to the appeal is its profitability in the past two years and the upgrade to its technology stack.

Analysts have placed valuations on Infomedia of between $2.10 to $2.15.

Infomedia counts Jens Monsees as chief executive, replacing Jonathan Rubinsztein who left to run Nuix last year.

The appeal for private equity is that the business can be considered a bet on new vehicle technology as transport companies like Tesla do more to connect directly with customers and cut out dealers.

The offer is a latest in a string of buyout proposals to emerge in the past year from private equity firms as they remain awash with cash due to record fund raising efforts following on from the low interest rate environment fuelled by the global pandemic.