Ziff Davis (ZD) M&A announcement summary

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 illustrating the quality of portfolio businesses.

• Sale price exceeds the pre-announcement market cap of the entire company, highlighting the magnitude of the transaction.

• The deal addresses a perceived market undervaluation and aims to reward investors for their patience.

• Connectivity division's global brands in broadband, mobile, and Wi-Fi will benefit from Accenture's scale and expertise.

• The Connectivity business, built through strategic acquisitions, demonstrated strong growth and value creation.

Financial terms and conditions

• Sale valued at 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.

• Connectivity generated $231 million in 2025, about 16% of total revenues.

• Proceeds from the sale will be evaluated for optimal use, including deleveraging, share repurchases, dividends, reinvestment, and general corporate purposes.

• The transaction is expected to close in the coming months, subject to closing conditions.

Synergies and expected cost savings

• The Connectivity team is expected to benefit from joining a leading global solutions and services company, Accenture.