Key Takeaway
Meltwater secures a $65M investment from Verdane, reflecting the evolving investment landscape in European tech and the company's focus on leveraging AI for media monitoring and business intelligence.
Meltwater, known for its media monitoring and business intelligence using AI and big data analytics, has attracted a new investor. Verdane, a Norwegian private equity firm, is acquiring an 11% stake in Meltwater, valuing the company at €542 million ($592 million) and the stake at approximately $65 million.
Verdane's Investment in Fountain Venture
The investment is made through Verdane acquiring a substantial stake in Fountain Venture, the investment vehicle controlled by Meltwater's founder and current chairman, Jørn Lyseggen. This move comes after Meltwater went private earlier this year in a deal with private equity firms Altor and Marlin, with Lyseggen retaining his shares via Fountain.
Portfolio Transaction and De-risking Strategy
Verdane's principal, Joakim Kjemperud, emphasized the portfolio nature of the deal, noting that it includes an implied direct stake in Meltwater and a stake in HR firm Jobylon, with Meltwater being the primary asset. This investment strategy reflects the current trend of investors seeking to de-risk in a tight market, especially in Europe, where private equity firms are increasingly participating in deals to compensate for the decline in VC funding.
Challenges and Opportunities in the Tech Landscape
Amidst the evolving tech landscape, companies like Meltwater are facing challenges and opportunities. The digitization of media and the rise of social media have transformed media monitoring, necessitating the use of AI and advanced analytics. However, the emergence of new technologies, such as generative AI, presents a competitive threat.
Meltwater's Focus on AI and Future Prospects
Despite the changing dynamics, Lyseggen remains optimistic about Meltwater's prospects, particularly in leveraging AI. He views AI as a game-changer and emphasizes Meltwater's commitment to investing in this technology. With a daily analysis of approximately 1 billion documents, Meltwater continues to serve clients in communications, marketing, and PR.
