LTE Charts of the Week showcase the power of Mergermarket’s Likely to Exit (LTE) predictive analytics engine. Find more financial sponsor exit opportunities by activating a two-week trial to Mergermarket or log in if you are a subscriber. 

Carlyle’s exit from UK-based video game developer and publisher Jagex to CVC Capital Partners and Haveli Investments for a reported GBP 900m (USD 1.1bn) is one of the largest financial sponsor exits of the year so far.

And there are plenty more dealmaking opportunities in the broader software publisher category, according to Mergermarket’s Likely to Exit (LTE) algorithm.

WestView Capital Partners-backed workflow process automation provider Cognito LLC is the strongest contender for a sponsor exit in the sector with an LTE Score of 67 out of 100. Cognito CEO Jamie Thomas told Mergermarket in July last year that a potential sale of the business was on the horizon as the business scales its online platform.

EQT-backed digital design specialist Freepik, with an LTE Score of 60, is another potential 2024 exit candidate. A planned sale process for the Malaga, Spain-based business late last year was postponed until early 2024, according to a media report. Jagex had an LTE Score of 66 shortly before the deal between Carlyle, CVC and Haveli was announced.

A strong deal pipeline in software publishing could point to a better year for M&A in the sector following a meagre 2023. The year is off to a solid start, according to Mergermarket deals data, with USD 81bn of deals announced globally in the year through 29 February, up sharply on 2023.

LTE Scores are generated using a machine-learning algorithm developed by ION Analytics data scientists, engineers, and journalists leveraging 20+ inputs from more than a decade of proprietary Dealogic deal data and M&A intelligence. Find out more about the score’s predictive capabilities in Mergermarket‘s LTE Predictive Scoring Whitepaper.

Note: Data correct as of 29 February 2024

Source: Mergermarket.ionanalytics.com