M&A · Tech · Services-Computer Processing & Data Preparation
Graham Holdings Co to acquire Leaf Group Ltd.
Announced Apr 5, 2021 · Closed Jun 14, 2021
Deal value$323MEV $249M
Premium21.0%To unaffected price
EV / Adj. EBITDA—1.2x EV / Revenue
ConsiderationAll cash$8.50 per share
Transaction
- Acquirer
- Graham Holdings Co (GHC)
- Target
- Leaf Group Ltd.
- Buyer type
- Strategic
- Offer price per share
- $8.50
- Enterprise value
- $249M
- Status
- Closed Jun 14, 2021
Deal protections
- Break fee (target pays)
- $12.9M · 4.0%
- Reverse fee (buyer pays)
- —
- Go-shop
- No-shop
- Financing
- No financing condition
Advisors
- To the acquirer
- Not disclosed
- To the target
- Canaccord Genuity
Sector context · Tech
- Comparable deals
- 26 in the prior 24 months
- Premium
- 21.0% vs. 33.0% sector median
- EV / Adj. EBITDA
- Sector median 17.3x
- Break fee
- 4.0% vs. 2.8% sector median
Timeline
- AnnouncedApr 5, 2021
- Proxy filedApr 23, 2021
- Definitive proxyMay 6, 2021
- Shareholder voteJun 10, 2021
- ClosedJun 14, 2021
Valuation · fairness opinions
Precedent transactions$24.00$55.00
Precedent transactions$7.23$14.06
Discounted cash flow$6.37$8.47
Offer $8.50
Implied value per Leaf Group Ltd. share by analysis, from Canaccord Genuity · DCF discount rate 12.5%–14%.