The Rumors were true- AlphaSense + Tegus

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The rumors were true. Alphasense is acquiring Tegus to form a company now valued at $4B. The headline number is AlphasSense is paying $930m and raised an additional $650m as part of this acquisition- co-led by Viking and BDT & MSD Partners.

Tegus has been on an acquisition spree the last few years- acquiring both Canalyst & BamSec. For AlphaSense, this is the second acquisition of a company they also were suing. They sued both Sentieo, then acquired and Tegus. The old saying goes, if you can’t beat em, join em. In this case, they settled in May of this year, but maybe that was just part of the eventual negotiation for Tegus to be acquired.

No matter how you look at it, this is now a data & information services behemoth that not only sells to financial institutions but also has a solid business selling to corporations and consultants. Expert network calls, transcripts, filings, models, and one of the most widely used platforms for analyzing/reading research from the sell side.

The natural question is when is the IPO? 2025? 2026? What’s the next big acquisition that can drive meaningful revenue and new clients? At this point the firm is doing hundreds of millions in revenue, so small acquisitions will just be tuck-ins. The big question is what can they acquire to expand revenue meaningfully or grab a new customer base? I have a few ideas which I will share in the coming months.

For now it will be interesting to see how they combine the product offerings. How do they integrate? Do they shut down any of the business lines or merge all the functionality into the AlphaSense front end? Who is the next up-and-comer to challenge them now?

Lots of questions and lots to be excited about.