PR Software Giant Cision Goes Private With Platinum

Large companies swell and decline and when management loses the ability to see clearly how to approach an upcoming segment of the company lifecycle, it sometimes turns to private equity. Public markets can be fickle and when investors keep tabs on quarterly earnings, company boards can be somewhat fearful of missing financial targets. Such short term performance pressures can cause companies to lose sight of the long term.

Private equity in part helps ease that pressure and put a company back on the right track. Recently Cision announced it would be bought by Platinum Equity for approximately $2.74 billion in an all cash deal with financing being provided by Bank of America.

Cision is the leading global provider of software and services to public relations and communications professionals. The company has over 4,800 employees with offices in 22 countries.

Its CEO Kevin Akeroyd said of the acquisition, "This transaction will provide shareholders with immediate and substantial cash value, while also providing us with a partner that shares in our commitment to customers and employees and can add strategic and operational value," further adding, "Based on our extensive engagement with Platinum over the past several months, we are confident that Platinum's support will enable Cision to execute on its strategy and next phase of growth."

Platinum is a well established private firm. It was founded in 1995 by Tom Gores and has over $19 billion in assets under management. It has completed more than 250 acquisitions over the past 25 years. Currently, Platinum is managing 40 portfolio companies.

Platinum Equity Partner Jacob Kotzubei commented on the transaction, "Cision has a long history of leadership providing software and services to public relations and marketing communications professionals and has developed a growing portfolio of earned media management offerings for the world's leading brands. Platinum looks forward to nurturing Cision's core business, supporting and anticipating the diverse needs of the company's customers, and driving new opportunities for innovation. As a private company, Cision will be able to make strategic investments for sustainable and profitable growth, while remaining agile and focused on operational excellence. We are excited to partner with Cision's management team as it embarks on this new chapter."