The deal would mark a lucrative exit for private equity firm Warburg Pincus, which valued Reorg around $400 million when it acquired a majority stake in 2018. It underscores the growing value of financial data and news providers niche markets that serve pockets of the Wall Exchange looking for an edge.
Permira prevailed in a bid for Reorg and could sign a deal to acquire him in the coming days, the sources said, warning there was always a chance negotiations could collapse at the last minute.
Reorg chief executive Kent Collier, who founded the New York-based company in 2013, will remain at the helm, the sources said.
The sources requested anonymity as the matter is confidential. Permira and Warburg Pincus declined to comment, while Reorg did not respond to a request for comment. Bloomberg News previously reported that Permira was in the lead to acquire Reorg.
Reorg helps restructuring professionals and investors track companies in financial difficulty. It employs reporters, analysts and legal experts who speak to industry sources and scour regulatory documents and court filings to provide the information.
Private equity firms have taken a liking to this corner of the publishing industry, lured by the lucrative subscription revenue it generates.
Earlier this month, private equity firms Astorg and Epiris agreed to acquire financial news and information provider Euromoney Institutional Investor for nearly $2 billion, while private equity group Welsh, Carson , Anderson & Stowe has disclosed an agreement to buy commercial real estate intelligence platform Green Exchange Golden Gate Capital.