US-based private equity firm Warburg Pincus has agreed two investments. It is partnering with US technology specialist Silver Lake to buy Interactive Data Corporation from the publishing group Pearson as well as buying Poundland – a discount retail chain in the UK – from Advent International.
The Interactive Data deal values the company, which provides financial market data and analytics, at $3.4 billion, said a statement from Pearson on Tuesday. In 2009, Interactive Data generated £484 million (€559 million; $738 million) in sales and £148 million in profits for parent company Pearson.
Poundland: Gone for $200m
The transaction is being financed with a combination of equity from Silver Lake and Warburg Pincus and debt financing provided by Bank of America Merrill Lynch, Barclays Bank, Credit Suisse Securities (USA) and UBS Investment Bank.
Warburg Pincus has also agreed to buy discount retail chain Poundland from Advent International. Financial details were not disclosed, but sources close to the situation confirmed that it was a £200 million all-equity deal.
Advent bought Poundland, which sells all its goods for £1 each, in 2002 for £50 million. The retailer now has a network of more than 260 stores and plans to open another 50 in the next two years. It is forecasting revenues in excess of £700 million for 2011.
The investment was made from Warburg Pincus Private Equity X, a $15 billion global private equity fund.
Advent was advised on the sale of Poundland by Close Brothers Corporate Finance, Weil Gotshal & Manges and KPMG. Warburg Pincus was advised by Credit Suisse, PwC and Clifford Chance.