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Ziff Davis (ZD) investor relations material
Ziff Davis M&A announcement summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Deal rationale and strategic fit
Entered a definitive agreement to sell the Connectivity business for $1.2 billion in cash, unlocking significant value for shareholders and highlighting the quality of portfolio businesses.
The sale addresses a perceived market undervaluation and aims to reward investors for their patience by realizing intrinsic value.
The Connectivity business, built through strategic acquisitions, demonstrated strong growth and value creation, serving as a model for future portfolio management.
Connectivity division's global brands in broadband, mobile, and Wi-Fi will benefit from Accenture's scale and expertise.
Financial terms and conditions
Sale price of $1.2 billion in cash, representing approximately 14.5x 2025 adjusted EBITDA less CapEx and over 5x 2025 revenues.
Definitive agreement to sell the Connectivity division for $1.2 billion in cash, subject to closing adjustments and taxes.
The sale price exceeds the pre-announcement market cap of the entire company, with the remainder generating about $385 million in adjusted EBITDA for 2025.
Connectivity generated $231 million in 2025, about 16% of total revenues.
Proceeds will be used for general corporate purposes and capital allocation activities.
Synergies and expected cost savings
The Connectivity team, including 450 employees, will join Accenture, aligning with a leading global solutions provider and offering growth opportunities.
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