Media business RELX (REL) is bolstering its Risk & Business analytics unit through the £580m all-cash acquisition of Californian digital identity business ThreatMetrix.
The San Jose headquartered firm analyses upwards of 100m transactions a day, across 35,000 websites from 5,000 customers. RELX already has a presence in this space through its LexisNexis Risk brand, with which ThreatMetrix has an existing commercial relationship.
RETURNS WILL TAKE TIME
The deal is expected close in the first half of 2018 but is not expected to have a ‘material’ impact on earnings this year. This explains why the shares are broadly unmoved at £15.62.
However, the deal does represent a stepping up of the company’s M&A activity. In 2017 it acquired companies worth a combined £123m and over the last five year it has averaged acquisition spending of £300m per year.
Shares looked at the RELX business model and investment case in this recent article.
