Carlyle to acquire majority stake in AI consultancy Adastra

PRAGUE/TORONTO - Global investment firm Carlyle (NASDAQ:CG), currently valued at $21.43 billion and showing strong momentum with a 20% gain year-to-date, has agreed to acquire a majority stake in Adastra Group SE, an IT consultancy specializing in AI, data, and cloud transformations, according to a press release statement issued Tuesday. According to InvestingPro analysis, Carlyle appears slightly undervalued at current levels, with a solid financial health score of "GOOD."

The transaction, which remains subject to regulatory approvals across multiple jurisdictions, will see equity provided jointly by Carlyle Europe Technology Partners V and Carlyle Asia Partners Growth II funds. The deal comes as Carlyle demonstrates robust financial performance, with impressive revenue growth of 127% in the last twelve months. Get deeper insights into Carlyle’s investment strategy and financial metrics with InvestingPro’s comprehensive research report, one of 1,400+ available for top US stocks.

Founded in 2000 with headquarters in Prague and Toronto, Adastra employs more than 2,000 professionals across North America, Europe, and Asia. The company provides data and AI-driven strategies and solutions to clients in sectors including financial services, automotive, manufacturing, and healthcare. Trading at a P/E ratio of 19.58, Carlyle’s valuation suggests market confidence in its strategic investments and growth potential.

Under the agreement, Carlyle will partner with Adastra’s founders to support the company’s growth in data, cloud, and AI offerings, while expanding its international presence through organic investments and targeted acquisitions.

"With Carlyle’s deep experience and global network, we believe we can unlock a new phase of growth for the business and capitalize on the substantial opportunity in the global market for AI, data, and cloud services," said Rob Turner, CEO at Adastra, and Pavel Kysela, COO at Adastra, in the announcement.

Vladimir Lasocki, Co-Head of the CETP investment advisory team, and Greg Zeluck, Co-Head of the CAPG investment advisory team, highlighted the opportunity to expand Adastra’s presence in the "large, fast-growing and attractive global market for data, analytics, cloud, and AI transformations."

J.P. Morgan served as financial advisor to Adastra on the transaction. Financial details of the acquisition were not disclosed.

In other recent news, The Carlyle Group has made significant strides with several noteworthy developments. The company recently announced a strategic partnership with Diversified Energy to invest up to $2 billion in natural gas and oil assets across the United States. This collaboration aims to leverage Carlyle’s expertise in credit and structuring alongside Diversified’s operational capabilities. Analysts have shown optimism towards Carlyle’s future, with Citi upgrading the stock to Buy, citing an improved fundraising outlook across multiple business segments. CFRA has also raised its price target for Carlyle to $58, highlighting early signs of recovery in private equity monetization.

Goldman Sachs maintains a Buy rating on Carlyle with a price target of $51.75, expressing confidence in the company’s growth initiatives in various sectors, which are expected to boost fee-related revenues significantly. Keefe, Bruyette & Woods adjusted their price target to $45 following Carlyle’s earnings report, which exceeded expectations due to higher fee-related earnings and net performance fees. Carlyle’s valuation remains notably below its peers, presenting a potential opportunity for the valuation gap to narrow as strategic initiatives progress. These recent developments underscore Carlyle’s dynamic positioning in the financial landscape.

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