(Reuters) - Buyout firms Court Square Capital Management LP and HGGC LLC are exploring the sale of Dynata LLC, a U.S. survey research company whose value could exceed $3 billion, including debt, people familiar with the matter said on Wednesday.
The sale process underscores how private equity firms are looking to cash in on the demand for market data from large corporations, consultants and investment firms, with U.S. sales of market research set to rise to $23 billion in 2019, according to research firm IBISWorld.
Dynata’s private equity owners are working with investment bank Evercore Inc (EVR.N) on an auction for the company, the sources said.
Dynata has 12-month earnings before interest, taxes, depreciation and amortisation in the region of $250 million, the sources added, requesting anonymity because the matter is confidential.
Representatives for Dynata, and Court Square Capital did not immediately respond to requests for comment. HGGC and Evercore declined to comment.
Dynata specializes in providing so-called first-party data, research that is sourced first hand by the company and highly prized by businesses looking to better understand customers.
It serves almost 6,000 clients including market research agencies, advertising agencies and investment firms, according to its website.
Shelton, Connecticut-based Dynata was formed in a 2017 merger of two companies owned by Court Square and HGGC, with the combined business rebranded as Dynata earlier this year.
Reporting by Joshua Franklin in New York, editing by Steve Orlofsky and G Crosse