Buyout firm Permira is nearing a deal to acquire Reorg Research Inc, a financial data vendor specializing in debt restructuring, for more than $1.3 billion, including debt, according to people familiar with the matter.
The deal would mark a lucrative exit for private equity firm Warburg Pincus, which valued Reorg at around $400 million when it acquired a controlling stake in 2018. It underscores the growing value of niche financial data and news providers that are serving pockets of Wall Street looking for an edge.
Permira has prevailed in an auction for Reorg and may ink an agreement to acquire it in the coming days, the sources said, cautioning that it was always possible that negotiations collapse at the last minute.
Reorg Chief Executive Kent Collier, who founded the New York-based firm in 2013, will remain at the helm, the sources said.
The sources requested anonymity because the matter is confidential. Permira and Warburg Pincus declined comment, while Reorg did not respond to a request for comment. Bloomberg News reported earlier that Permira was in the lead to acquire Reorg.
Reorg helps restructuring professionals and investors keep track of companies in financial trouble. It employs journalists, analysts and legal experts who speak to industry sources and scour regulatory documents and court filings to provide the information.
Private equity firms have been enamored with this corner of the publishing sector, attracted to the lucrative subscription revenue it generates.
Earlier this month, private equity firms Astorg and Epiris agreed to acquire financial news and information provider Euromoney Institutional Investor for almost $2 billion, while private equity group Welsh, Carson, Anderson & Stowe unveiled a deal to buy commercial real-estate intelligence platform Green Street from Golden Gate Capital.
