| Background |
Based in Lugano, Switzerland, Brainpower N.V (“Brainpower”, or the “Company”) a publicly listed company (Deutsche Bourse – “BPW”), was founded by Rocco Pellegrinelli, - a former investment manager, together with two highly regarded technical managers. They set out to deliver a world-class platform that would help European investment managers identify and take advantage of market opportunities. They patterned the Company after Factset and Bloomberg and offered fast access to a wide range of financial information combined with sophisticated, proprietary analytics and an efficient delivery and display environment. Over time, more than 100 of the most sophisticated investment-management firms in Switzerland, Italy and Central Europe came to rely on the Company for insight into their portfolios and securities holdings.
Prior to engaging M&A, the Company was approached by several firms looking for an acquisition partner. While no transaction resulted, these conversations helped Management (and the Board) conclude that the right transaction - with the right partner - could benefit customers - leveraging the company’s products and capabilities; could provide an exciting career path for employees; and could provide appropriate value for shareholders - with lower execution risk than continuing independently.
They engaged M&A as the Company’s exclusive strategic and financial advisor. |
| Overiew of Transaction |
- On April 9th 2006, Brainpower entered into an agreement to be acquired by Bloomberg L. P., one of the world’s leading global providers of data, news and analytics. The tender was completed on June 5th 2006. Bloomberg has a strong culture of building all applications and products internally. They seldom acquire. But, in this case, Bloomberg and others came to recognize the unique power of Brainpower's analytical products - as well as its highly talented technical staff.
- The transaction was valued at a premium of 59% to Brainpower's volume weighted average trading price during the previous three months. In addition, Bloomberg agreed to assume certain liabilities. The total price was about 5 times Brainpower’s reported revenue for the prior calendar year.
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| M&A Role |
- M&A was the exclusive strategic and financial advisor to Brainpower.
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Press Release | Case Study |
