A few weeks ago, London-based data and analytics firm GlobalData Plc announced the acquisition of Celent, a research and advisory firm from Marsh McLennan’s Oliver Wyman Group, as part of its ongoing M&A strategy.
Acquisition of Celent
GlobalData’s recent acquisition of Celent is expected to enhance the firm’s offerings by integrating Celent’s expertise in technology strategy for the financial services market, creating added value for existing customers and opening new opportunities. This deal is also part of GlobalData’s target of achieving £500 million in annual revenue by the end of a three-year plan.
Celent, a leading research and advisory firm, is currently part of Marsh McLennan’s Oliver Wyman Group. For over 20 years, Celent has helped Technology and Strategy leaders in the Financial Services Market make faster and more informed decisions around their technology strategies allowing them to execute at scale.
Mike Danson, CEO of GlobalData PLC, commented on the deal saying,“The acquisition of Celent represents a further complimentary acquisition, which is aligned closely to our bolt-on philosophy. I would like to take this opportunity to welcome our new group of highly talented colleagues and their valued customers to the Group and wish them every success for the future with GlobalData.”
Juan Mazzini, Director of Insurance Practice for APAC, EMEA, & LATAM at Celent announced the news on social media, saying “This is a significant milestone for us, bringing together two organisations with a shared commitment to delivering exceptional insights and services to our clients. We believe this new partnership will create a powerful combined offering that enhances the value we provide.”
Completion of the acquisition, which is subject to certain closing conditions, is expected to occur on December 31, 2024 and will be funded from the Group’s existing cash resources.
About GlobalData
GlobalData Plc provides data analytics and consulting services across multiple industries, offering clients insights into market trends, competitive landscapes, and strategic intelligence. Founded by Mike Danson, who previously co-founded Datamonitor, the company has grown through both organic expansion and strategic acquisitions.
The company’s history dates back to 1999, when it was established as TheMutual.net, later becoming the TMN Group. After operating as Progressive Digital Media Group, the firm changed its name to GlobalData Plc in 2016. For the year ending December 2022, the company reported revenues of £243.2 million and a profit before tax of £38.4 million, an 18% increase from the previous year.
The company’s core offering is its Intelligence Center platform, which integrates data analytics, expert analysis, and research tools. GlobalData employs approximately 2,000 in-house research analysts and 150 data scientists in 25 countries, providing industry specific intelligence across sectors, including healthcare, technology, retail, financial services, and energy. Their platform combines market forecasting, competitive analysis, and thematic research to help clients identify emerging trends and make strategic decisions.
GlobalData has made several significant acquisitions to expand its capabilities in recent years. In 2022, the company acquired economic research firm TS Lombard, adding macroeconomic analysis to its predominantly corporate and industry-focused offerings. That acquisition, which maintained TS Lombard’s brand independence, helped GlobalData diversify its client base beyond corporates into the institutional investor community. More recently, GlobalData announced that it had acquired Minneapolis-based job data provider LinkUp.
Late in 2023, GlobalData sold a 40% stake in its healthcare division to Inflexion Private Equity Partners for £434 million in cash. At the time, the healthcare division represented 36% of GlobalData’s revenue. The remaining 60% of the Healthcare division remained with GlobalData. A significant portion of the cash infusion funded the firm’s recent spate of bolt-on acquisitions.
Our Take
The acquisition of Celent marks another strategic expansion for GlobalData as it pursues its ambitious revenue target of achieving £500 million annual revenue by the end of a 3-year plan. The firm regenerated £273 mln in revenue in 2023.
The addition of research and advisory services for the technology sector should complement the GlobalData’s existing intelligence offerings and provide valuable cross selling opportunities across its client base.
However, the success of this acquisition will depend on GlobalData’s ability to effectively integrate Celent’s various services into its Intelligence Center platform and market those services to existing clients. The company’s track record with past acquisitions and integrations suggests it understands how to preserve the value of acquired businesses while leveraging their capabilities across its broader platform.
For clients, the critical question will be how effectively GlobalData can combine Celent’s technology research and advisory services with its existing research and data sets to provide enhanced insights. Given the increasing importance of the technology industry in developing successful corporate strategy and investment decisions, the acquisition appears well timed.