Infopro Digital Group B.V.

Overview Key strengths Key risks Good revenue visibility, with subscription revenue representing about 70% of the total. Highly leveraged capital structure, combined with appetite for debt-funded acquisitions. Positive free cash flow, with limited capex and working capital requirements, and adequate liquidity. Small scale and concentration of earnings in France. Exposure to live tradeshows, causing performance volatility during the pandemic. Aggressive acquisitive strategy strengthens the business but constrains deleveraging in the medium term. Infopro recently announced its intention to acquire Barbour ABI, a U.K. provider of construction sales leads and intelligence, for about €90 million, to be financed with a €115 million tap on the senior secured notes. S&P Global Ratings estimates that this acquisition will add about €18 million and

... business but constrains deleveraging in the medium term. Infopro recently announced its intention to acquire Barbour ABI, a U.K. provider of construction sales leads and intelligence, for about 90 million, to be financed with a 115 million tap on the senior secured notes. S&P Global Ratings estimates that this acquisition will add about 18 million and 6 million to the group's revenue and adjusted EBITDA, respectively, while the additional debt will keep adjusted leverage higher than previously expected. In 2021, pro forma the acquisition, we estimate adjusted debt to EBITDA of about 8.0x, progressively declining toward 7.0x-7.5x in 2022-2023. We believe the addition of Barbour ABI will strengthen Infopro's product portfolio, expanding its offering in one of its key markets and further improving its diversification outside of France. The target generates most of its revenue through recurring subscriptions, which will also support Infopro's...

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