New Mountain is said to seek buyer for IRI

New Mountain Capital has put Information Resources Inc up for sale, three sources said.

It’s unclear how much New Mountain is seeking for the Chicago company or who is advising.

IRI provides market-measurement data and services to healthcare organizations, retailers and media.

News of the sale comes a year and a half after New Mountain last considered exit options for IRI. The PE firm spoke to advisers about a sale or IPO of IRI, Bloomberg said in September 2016. A sale of IRI was valued at more than $2.5 billion, the story said. IRI was in talks to be sold in September 2016 to an undisclosed investor but the deal was canceled, PitchBook said.

Instead of selling, IRI paid out a $627 million dividend to shareholders, Moody’s said in December 2016. New Mountain, which owns 81 percent, appears to have received about $508 million, while Symphony Technology Group, with 15 percent, got $94 million. IRI’s management also received some of the payment, Moody’s said.

The next year, in 2017, IRI received $100.3 million in development capital from Invesco and other investors, PitchBook said.

New Mountain’s investment in IRI dates to 2011 when the company was known as SymphonyIRI Group Inc. Symphony Technology sold IRI to New Mountain in a deal valued at $800 million, Moody’s said. New Mountain was expected to invest $340 million equity, the ratings company said. Symphony Technology Group, the seller, along with management, rolled over some equity.

New Mountain, New York, is a generalist investor. In September, the PE firm closed its fifth fund on $6.15 billion, beating its $5 billion target. New Mountain’s fourth fund collected $4.13 billion in 2013, while its third pool, a 2007 vintage, weighed in at about $5.12 billion.

News of IRI’s sale was previously reported by Mergermarket.

Executives for IRI declined comment. New Mountain, Invesco and Symphony could not be reached for comment.

Action Item: Call Steve Klinsky, New Mountain’s founder and CEO, at +1 212-720-0300

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