Carlyle-backed YipitData weighs sale at valuation of up to $3bn

Carlyle-backed YipitData is considering a potential sale that could value the business between $2.5bn and $3bn, according to a Reuters report citing unnamed sources familiar with the matter. The New York-based alternative data and analytics provider has enlisted Goldman Sachs to guide the process, with conversations involving both private equity firms and potential strategic buyers in the preliminary stages.

However, there is no assurance that a transaction will ultimately be finalized. YipitData's prospects for a sale align with the growing investor focus on companies that command proprietary datasets, especially as demand surges for data to fuel artificial intelligence applications. Such assets can also generate recurring revenue streams that are less susceptible to the disruptions AI is causing across various sectors of the technology industry.

Founded in 2010 by Vinicius Vacanti and James Moran, YipitData provides research and analytics based on alternative data to hedge funds, private equity firms, asset managers, and corporations. Its datasets encompass e-commerce, payments, software, ridesharing, and consumer technology sectors. Notable clients include Walmart, Lowe's, and Ulta Beauty, with the company anticipated to generate around $280m in annual recurring revenue this year, with revenue growth surpassing 30%, as per the sources.

A sale at the proposed valuation range of $2.5bn to $3bn would represent a significant boost from YipitData's previous valuation. Carlyle had led a $475m investment in the company back in December 2021, when the business was valued at over $1bn.