FT : Mubadala eyes investment in UK data firm 9fin at $500mn valuation

Mubadala eyes investment in UK data firm 9fin at $500mn valuation
Deal by Abu Dhabi state fund would be latest in a string of high-profile investments in market data providers

Abu Dhabi’s Mubadala Capital is in talks to invest in UK corporate debt research start-up 9fin, in a deal that would value the privately held company at around $500mn, according to people familiar with the matter.

The investment by the Middle Eastern fund would mark the latest in a flurry of high-profile transactions for businesses that provide information on niche areas of financial markets.

No final agreement has been reached and may be weeks away, said the people. Other suitors including private equity giant KKR, had also been part of the stake sale process. 9fin, Mubadala Capital and KKR declined to comment. 

9fin was founded in 2016 in London by former JPMorgan banker Steven Hunter and Huss El-Sheikh, who previously worked for Deutsche Bank. It employs journalists who break news about leveraged finance deals as well as former deal lawyers and financial analysts who write analysis on investment opportunities.

9fin and rivals such as Debtwire and Reorg have also invested heavily in engineers to build software and AI products that organise and summarise financial and legal filings.

Annual subscriptions to such services can run into the tens or even hundreds of thousands of dollars and private capital investors have been attracted to the recurring revenues paid by hedge funds, law firms and investment bankers who rely on the news, data and analysis.

The company has roughly $25mn in annual recurring revenue though it remains unprofitable as it invests in new staff and technology.

It has more than 200 employees in London and New York, many of whom previously worked for large financial services firms or well-known media organisations and law firms.

9fin raised $23mn in a previous financing round in 2022 led by Spark Capital.

The deal would be the latest in a series of high-profile investments in financial market data providers.

New York-based Reorg, considered the market leader, sold a majority stake to Permira in 2022 at a $1.3bn valuation. Reorg recently changed its name to Octus to emphasise its broader offering beyond bankruptcy coverage and market participants say it could be put up for sale by its private equity owner in 2025.

BlackRock agreed to buy Preqin, a UK private markets data group, for £2.55bn in July, a first foray into financial information provision for the world’s biggest asset manager.

In 2022, Morningstar acquired Leveraged Commentary and Data (LCD) for $600mn. CreditSights was acquired by Fitch in 2021 for an undisclosed price.

>>> US Gapping Down

Gapping down
In reaction to earnings/guidance:

ASUR -16.3%, NVT -6.1%, DBRG -6%, TDS -5.7%, BJRI -5.6%, AMCR -4.5% (also to sell its 50% interest in Bericap North America for $122 mln; also raises dividend), GTLS -3.7%, FOXF -3.4%, ESNT -3.3%, RMAX -3%, CUBI -2.7%, KWR -2.7%, EMN -2.5%, EGO -2.2%, IR -2%, AAPL -1.8% (also files debt securities shelf offering for an undisclosed amount), SM -1.6%, CTRA -1.5%, RGA -1.5%, ZYME -1.5%, AMED -1.4%, CAR -1.3%, TNC -1.2% (also increases dividend), LNT -1.1% (also expects to increase dividend in FY25), VIAV -1.1%
Other news:

EPIX -70% (Announces Termination of Phase 2 Study Evaluating Masofaniten Combined with Enzalutamide in Patients with Metastatic Castration-Resistant Prostate Cancer)
LXRX -34.4% (FDA panel votes 11-3 against benefits for LXRX's Sotagliflozin)
ARBE -19.2% (stock offering)
ASPI -9.3% (stock offering)
MYO -3% (MyoPro to be provided to patients covered by private insurance)
BWMN -1.6% (to acquire Exeltech)
PTON -1.2% (MEC and PTON resolve litigation)

>>> US Gapping up

Gapping up
In reaction to earnings/guidance:

TEAM +20.8% (also authorizes new $1.5 bln share repurchase program), PRLB +18.8%, CDXC +17.5%, HALO +12%, W +11.7%, MTZ +9%, WAT +8.6%, MD +8.4%, GDYN +7.5%, AMZN +7.2%, UNF +7.1% (also to delay 10-K), INTC +5.9%, DORM +5.2% (also authorizes new $500 mln share repurchase program), FUBO +5.1%, CHTR +5%, CON +4.5%, TREE +4.3%, MGA +3.9%, TILE +3.9%, ICFI +3.8%, CUBE +3.6%, USM +3.4%, ACCO +3.1%, LOCO +3.1%, SEM +3% (also authorizes new $1 bln share repurchase program), SPNT +3%, SON +2.7%, CAH +2.7%, MERC +2.6%, NMR +2.5%, CVX +2.1%, XOM +1.9%, LMAT +1.8%, TXNM +1.8%, SKYW +1.7%, CNO +1.6%, VICI +1.1%
Other news:

GSAT +64.8% (enters into a material definitive agreement)
EOSE +8.7% (achieves all four of the second performance milestones)
CDZI +8.6% (enters into LoI with infrastructure fund)
KRMD +6.5% (presents data)
ABT +5.3% (cleared of liability in latest preterm formula case, according to Reuters)
BRLS +5.3% (expands US Walmart distribution)
CACI +5% (awarded $226 mln task order from US Southern Command)
WMPN +3.7% (Mid Penn Bancorp (MPB) to acquire WMPN in an all-stock transaction valued at approximately $127 million)
ZK +3.3% (October deliveries)
RILY +2.7% (provides update on wealth management business)
BA +2.3% (Boeing union is endorsing and recommending the latest IAM/Boeing Contract Proposal; vote will take place Monday)
SUPN +2.1% (announces data in a poster presentation)
EE +2.1% (increases dividend)
TTEC +1.9% (retains legal and financial advisors)
WCC +1.6% (to acquire Ascent)
TSM +1.3% (will receive ASML (ASML) chip machines by the end of the year, according to Digitimes)

>>> US Gapping up

Gapping up
In reaction to earnings/guidance:

TEAM +20.8% (also authorizes new $1.5 bln share repurchase program), PRLB +18.8%, CDXC +17.5%, HALO +12%, W +11.7%, MTZ +9%, WAT +8.6%, MD +8.4%, GDYN +7.5%, AMZN +7.2%, UNF +7.1% (also to delay 10-K), INTC +5.9%, DORM +5.2% (also authorizes new $500 mln share repurchase program), FUBO +5.1%, CHTR +5%, CON +4.5%, TREE +4.3%, MGA +3.9%, TILE +3.9%, ICFI +3.8%, CUBE +3.6%, USM +3.4%, ACCO +3.1%, LOCO +3.1%, SEM +3% (also authorizes new $1 bln share repurchase program), SPNT +3%, SON +2.7%, CAH +2.7%, MERC +2.6%, NMR +2.5%, CVX +2.1%, XOM +1.9%, LMAT +1.8%, TXNM +1.8%, SKYW +1.7%, CNO +1.6%, VICI +1.1%

>>> Globalstar enters into a material definitive agreement

Globalstar enters into a material definitive agreement
  • As previously disclosed, Globalstar, Inc. is party to a terms agreement with its customer, Apple Inc. (AAPL), which Terms Agreement contains terms and conditions governing the development, launch and operation of Satellite Services.
  • Extended MSS Network
    • On October 29, 2024, the Company and Customer agreed to make certain amendments to the Services Agreements and entered into other related agreements for Globalstar to deliver expanded services to Customer over a new mobile satellite services network, including a new satellite constellation, expanded ground infrastructure, and increased global MSS licensing. The Extended MSS Network will be owned by Globalstar Licensee, LLC, together with its subsidiaries, and operated by the Company.
    • The Company will retain control of the board of managers of the Globalstar SPE and continue to operate and maintain the assets owned by and licenses granted to the Globalstar SPE. Globalstar will retain 100% of all terrestrial, MSS and other revenue and will continue to allocate 85% of its network capacity to render the Satellite Services to Customer across existing and new satellites as well as use the remaining capacity to service its other MSS customers.

>>> US Early premarket gappers

Early premarket gappers
  • Gapping up:
    • PRLB +20.6%, TEAM +20.1%, CDXC +17.5%, HALO +14.7%, WMPN +12.2%, CDZI +8.6%, GDYN +7.5%, UNF +7.1%, AMZN +6.1%, INTC +5.9%, BRLS +5.3%, DORM +5.2%, EOSE +5.1%, CACI +5%, ABT +4.8%, TREE +4.7%, CON +4.5%, MTZ +4.2%, ZK +4.1%, MGA +3.9%, TILE +3.9%, ICFI +3.8%, CUBE +3.6%, LOCO +3.1%, SEM +3%, SPNT +3%, SON +2.7%, MERC +2.6%, NMR +2.5%, SKYW +2.3%, SUPN +2.1%, EE +2.1%, KRMD +2.1%, LXRX +2.1%, BA +2.1%, CVX +2.1%, CTRA +2%, ACCO +1.6%, CNO +1.6%, AES +1.2%, WCC +0.9%
  • Gapping down:
    • EPIX -64.8%, ARBE -18.7%, FOXF -7.9%, ASUR -6.8%, BJRI -5.6%, ASPI -5.2%, MYO -3%, BWMN -3%, RMAX -3%, CUBI -2.7%, KWR -2.7%, AMCR -2.3%, EGO -2.2%, SM -1.6%, RGA -1.5%, ZYME -1.5%, NIO -1.4%, COHU -1.3%, COF -1.2%, CAR -1.2%, TNC -1.2%, WAT -1.2%, CCCC -1.1%, LNT -1.1%, VIAV -1.1%, AAPL -1%, IR -1%