Carlyle-backed YipitData Explores Sale at $2.5bn-$3bn Valuation
Carlyle-backed alternative data and analytics provider YipitData is exploring a potential sale that could value the business at between $2.5bn and $3bn, according to a report by Reuters citing unnamed people familiar with the matter. The New York-based company has hired Goldman Sachs to advise on the process, with discussions involving both private equity firms and strategic buyers understood to be at an early stage. There is no guarantee that a transaction will ultimately be completed.
Sale Process Details
YipitData’s potential sale comes as investors place greater value on companies that control proprietary datasets, particularly as demand grows for information that can help power artificial intelligence applications. Such assets can also provide recurring revenue streams that are less vulnerable to the disruption AI is causing across parts of the technology sector. The company has hired Goldman Sachs to advise on the process.
Company Background
Founded in 2010 by Vinicius Vacanti and James Moran, YipitData supplies research and analytics based on alternative data to hedge funds, private equity firms, asset managers and corporates. Its datasets cover areas including e-commerce, payments, software, ridesharing and consumer technology. The company counts Walmart, Lowe’s and Ulta Beauty among its customers.
Financial Performance and Prior Valuation
YipitData is expected to generate around $280m in annual recurring revenue this year, with revenue growth running at more than 30%, according to the sources. A sale at $2.5bn to $3bn would represent a substantial increase on YipitData’s previous valuation. Carlyle led a $475m investment in the business in December 2021, when the company was valued at more than $1bn, according to Private Equity Wire.
