Content Assessment: An eDiscovery Holiday Season Down Under? Macquarie Prepares Nuix for IPO
Information - 95%
Insight - 95%
Relevance - 100%
Objectivity - 90%
Authority - 90%
A short percentage-based assessment of the qualitative benefit of the recent post sharing initial details of a potential Nuix IPO in late 2020.
Editor’s Note: As a creator of innovative software that empowers organizations to simply and quickly find the truth from any data in the digital world, Nuix is a well-known company with deep roots in the eDiscovery ecosystem. According to IT News author Paulina Duran, Nuix sells software for cybersecurity risk, compliance and “case discovery”, that helps companies, enforcement authorities, and investigators, review digital data and detect fraud and corruption. In recent weeks the company has been in the news based on its potential Australian IPO being prepared by majority owner, Macquarie Group. Provided for information and context regarding this potential IPO, the following four article extracts are highlighted for your review.
Macquarie Prepares Nuix for $1.5 Billion IPO
Extract from an article by Paulina Duran
Macquarie Group is preparing to list its majority-owned software provider Nuix in a deal that would value the data-analysis program seller at close to $1.5 billion, two sources with knowledge of the plans told Reuters.
Macquarie, which owns about 65 percent of the company that has been used to analyse thousands of documents as part of high-profile investigations such as Volkswagen’s emissions scandal and the “Panama Papers” cases, is handling the process alongside Morgan Stanley, the sources said.
Macquire Set to Redeem Itself with $1.5 Billion Nuix Float
Extract from an article by John Beveridge
Some investors may have been shocked by Macquarie Group’s (ASX: MQG) 35% net profit slump but there is every chance that the investment bank could come back bigger and stronger.
One of the ways it could do just that is through the much-awaited $1.5 billion float of its data analytics startup Nuix.
The stars are aligning for the Nuix float – and many other floats, for that matter – which is set to be the biggest in Australia this year as the IPO market continues to enjoy a moment in the sun.
Big Fish Nuix Could Rewrite Record Books at Macquarie
Extract from an article by Sarah Thompson, Anthony Macdonald, and Tim Boyd
Nuix has been self-funding since 2008, according to a pitch to fund managers this week, which means it never needed fresh funds from Macquarie to get to the stage where it is today; $176 million revenue a year and profitable.
The only time Nuix raised equity was to help fund Ringtail eDiscovery Platform, fund managers were told, which was acquired in 2018 for $US55 million. Macquarie topped up its investment as part of the deal.
By Street Talk’s back of the envelope calculations, Macquarie is likely to have invested $100 million to $150 million into Nuix.
Nuix is now lining up for an initial public offering or trade sale that is expected to value it at $1.5 billion to $2 billion, which make Macquarie’s stake worth $1 billion to $1.3 billion.
Even if you take a conservative view of valuation, at $1.2 billion, Macquarie’s stake would be worth $800 million.
Nuix IPO to Lift Macquarie Out of COVID Slump
Extract from an article by Colin Kruger
Macquarie holds the Nuix stake on its own balance sheet, rather than in external funds, meaning the investment banking giant could be in line for significant windfall from the public listing. Investor roadshows this month, led by Nuix chief executive Rod Vawdrey, reported revenue for the financial year ending June 30 topped $176 million.
While the presentations did not include any forecasts, revenue is expected to exceed $200 million this year and a valuation of 10 times future revenue is considered a real possibility. Buy now, pay later giant Afterpay was trading at 28 times its forecast revenue after its results last month.
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