Portfolio Updates

Access’ transformational expansion into Asian markets will treble revenues and highlight valuation discount

Access Intelligence PLC (Access), a Software-as-a-Service (SaaS) solutions provider for the PR, communications and marketing industries, is acquiring iSentia, an Australian media monitoring company,  for an Enterprise Value (EV) of £44m, financed by an equity raise of £52m, the additional amount covering fees and working capital. The EV is broken down between £19m market cap and £25m of debt on the target balance sheet.

Kestrel Insight

iSentia will treble Access’ revenues and accelerate its path to cash generation. Access has already demonstrated its relevance to customers in all industries and geographies (Amazon, E&Y, Mastercard, Sainsburys, Twitter) and its rapid growth in the US, coupled with this move into Asia, will enhance its visibility as a global leader in marketing communications software.

Move into Asia

This acquisition presents a transformational move for Access into Asia, the world’s fastest growing social media market. iSentia is the Australasian market leader in media monitoring, with operations in a further six South East Asian countries. Access has a market-leading social media listening product, evidenced by its new customer wins against the competition. iSentia’s existing Asian customer base and distribution capacity will allow Access to accelerate growth in the region.

Cost Savings

Since Kestrel’s 2015 investment, Access has driven automation through its operations; iSentia will benefit from Access’ investment and expertise in automation, resulting in savings from merging software platforms and removing duplicate corporate costs.

Valuation Discount

The acquisition of iSentia should highlight Access’ existing valuation discount. Although Access shares have performed well over the past year, we estimate its rating is below 2x revenue for the first full year of the combined businesses, compared to similar businesses in the US which trade at nearer 8x revenues. That disparity appears anomalous and, combined with this latest acquisition, we have great hopes for Access’ future.


Kestrel’s Portfolio Updates should neither be construed as investment research, nor the provision of investment advice, nor a recommendation. This article should be viewed as short term commentary only based on the latest economic statistics, company results or information on upcoming releases or events. It is only a brief unsubstantiated summary of Kestrel’s opinion on such information as at the date of publication and no reliance may be placed upon any contents of this article by the recipient.


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