The transaction highlights the ongoing pressure on tech company valuations and the current nature of dealmaking, with investors seeking to de-risk. Verdane's investment in Fountain Venture, rather than directly in Meltwater, allows it to acquire stakes in multiple companies, thereby reducing its focus on a single business. The deal comes as Meltwater, which has transitioned from print media monitoring to AI and big data analytics, faces competition from companies like OpenAI.
Key takeaways:
- Norwegian private equity firm Verdane is investing in Meltwater, a company specializing in media monitoring and business intelligence, by taking an 11% stake valued at around $65 million.
- The investment is being made through Fountain Venture, the investment vehicle controlled by Meltwater's founder and current chairman, Jørn Lyseggen, with plans to partner for future investments in AI startups.
- The deal also includes a stake in HR firm Jobylon, though Meltwater is the larger asset, with an annual recurring revenue of around €500 million.
- Meltwater, which has roots in traditional media monitoring, has evolved with the rise of digital and social media, and has built AI in-house and acquired businesses for analytics consolidation, but faces competition from companies like OpenAI.