Stryker shares tumble despite strong Q2 results and raised guidance
Raymond (NSE:RYMD) James downgraded Dun & Bradstreet (NYSE:DNB) from strong buy to market perform on Thursday following shareholder approval of the company’s pending acquisition.
Shareholders of the business analytics firm voted Wednesday to approve the company’s sale to Clearlake Capital for $9.15 per share, effectively finalizing the transaction. The company, which maintains impressive gross profit margins of 62%, will transition from public markets with a market capitalization of approximately $4 billion.
Raymond James indicated it had previously maintained hope for "a better outcome for D&B’s shareholders," but Wednesday’s approval "would seem to close the door on that possibility," prompting the downgrade.
The research firm made no changes to its financial estimates for Dun & Bradstreet despite the rating adjustment.
The downgrade comes as Dun & Bradstreet transitions from a publicly traded company to private ownership under Clearlake Capital’s portfolio once the acquisition closes.
In other recent news, Dun & Bradstreet Holdings, Inc. has seen significant developments with the approval of a merger agreement by its shareholders, paving the way for a merger with Denali Intermediate Holdings, Inc. This decision follows a substantial shareholder turnout and favorable voting results. Additionally, Clearlake Capital Group is on the verge of securing $5.5 billion in private debt financing to support its acquisition of Dun & Bradstreet. This financing, led by Ares Management (NYSE:ARES) Corp. and supported by Morgan Stanley (NYSE:MS), includes a $5 billion term loan and a $500 million revolving credit facility.
In another development, Jefferies analysts have downgraded Dun & Bradstreet’s stock from Buy to Hold, adjusting the price target from $11.00 to $9.15. This change in rating aligns with the recent acquisition agreement by Clearlake Capital, which values Dun & Bradstreet at $7.7 billion. The acquisition deal, unanimously approved by Dun & Bradstreet’s Board of Directors, offers shareholders $9.15 per share and is expected to close in the third quarter of 2025. The transaction includes a 30-day "go-shop" period, allowing Dun & Bradstreet to seek potentially superior offers. Upon completion, Dun & Bradstreet will become a privately held company, with its stock delisted from public markets.
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