YipitData, a data analytics provider backed by investors including Carlyle Group (CG.O), is exploring a sale that could value the company at more than $2.5 billion, people familiar with the matter said.
The move comes at a time of heightened investor interest in businesses with proprietary datasets, both due to their ability to train artificial intelligence models with unique insights, but also because difficult-to-replicate data assets can continue to generate revenue even as AI undermines other technology usage.
New York-based YipitData, which counts Walmart (WMT.O), Lowe's (LOW.N) and Ulta Beauty (ULTA.O) among its customers, is working with investment bankers at Goldman Sachs (GS.N) on the sale process, the sources said, speaking on condition of anonymity.
Deliberations with potential strategic buyers and private equity firms are at an early stage, added the sources, who cautioned there is no certainty a deal will be struck. They also spoke on condition of anonymity.
Goldman Sachs declined to comment. Carlyle, YipitData, did not immediately respond to requests for comment.
Founded in 2010 by Vinicius Vacanti and James Moran, YipitData provides research and analytics derived from alternative datasets. This helps hedge funds, private equity firms, asset managers and corporations track performance and trends across sectors including e-commerce, payments, software, ridesharing and consumer technology.
YipitData is on target to generate approximately $280 million in annual recurring revenue (ARR) this year, while revenue is growing at a rate of more than 30%, according to the sources.
The sources indicated the company could fetch between $2.5 billion and $3 billion in a sale. This would be a significant jump on the more than $1 billion valuation the company was marked at in December 2021, when Carlyle led a $475 million funding round.
Should a deal happen, it would be the latest involving an information services company with proprietary data assets. Investment firm Sixth Street recently acquired commodities intelligence provider Kpler, valuing the firm at north of $3.7 billion. S&P Global (SPGI.N) completed in November the $1.8 billion purchase of London-based financial data firm With Intelligence.
