Ziff Davis (ZD) M&A announcement summary

Deal rationale and strategic fit

• Entered a definitive agreement to sell the Connectivity business for $1.2 billion in cash, unlocking significant value for shareholders and highlighting the quality of portfolio businesses.

• The sale addresses a perceived market undervaluation and aims to close the gap between intrinsic and market value.

• The Connectivity business, built through acquisitions and organic growth, has become a leader in network intelligence and optimization, with global brands in broadband, mobile, and Wi-Fi expected to benefit from Accenture's scale and expertise.

Financial terms and conditions

• Sale price is $1.2 billion in cash, representing approximately 14.5x 2025 adjusted EBITDA less CapEx and over 5x 2025 revenues, subject to closing adjustments and taxes.

• The sale price exceeds the pre-announcement market cap of the entire company.

• Connectivity generated $231 million in 2025, about 16% of total revenues.

• The business was acquired and built for about $380 million, generating an estimated $650 million in cumulative adjusted EBITDA less CapEx.

• Proceeds will be used for general corporate purposes and capital allocation activities.

Synergies and expected cost savings

• The Connectivity team is expected to benefit from joining a global leader, Accenture, enhancing growth opportunities for employees.