Cannae Holdings in expansion mode with US$1.08bn book value of portfolio company investments

Shares of Cannae Holdings Inc (NYSE:CNNE) traded flat in premarket trade Monday after the principal investment firm reported an unexpected loss in the second quarter, although it significantly expanded the portfolio of its company investments.

The Las Vegas, Nevada-based firm’s total book value of portfolio company investments totaled US$1.080bn as of June 30, 2018 compared to US$1.059bn in December 31, 2017.

On August 8, Cannae Holdings entered into an agreement with CC Capital and funds affiliated with Thomas H Lee Partners to acquire data and analytics company Dun & Bradstreet (NYSE:DNB).

According to Cannae, the transaction is valued at US$6.9bn, including the assumption of US$1.5bn in Dun & Bradstreet’s debt. 

“In an increasingly data-driven world, Dun & Bradstreet’s insight-driven business model and interconnectivity across industries has positioned the company for continued success. We are excited to grow the company,” said Cannae Holdings Chairman William P. Foley II.

Dun & Bradstreet shareholders will receive US$145 in cash for each common share.

For the quarter ended June 2018, Cannae Holdings reported a loss of US$18.8mln, or $0.26 per share on revenue of US$303.9mln. The consensus earnings estimate called for a profit of US$0.02 per share on revenue of US$308.0mln.

The company said that excluding US$25.3mln of IPO and debt refinancing related expenses, operating profit would have been US$14.0mln.

The stocks were flat at US$18.85 in premarket trade Monday. 

Contact Uttara Choudhury at [email protected]

Follow her on Twitter: @UttaraProactive 

Story by ProactiveInvestors