SPH: (S$4.09) Invests into data analytics firm, Handshakes
Singapore Press Holdings (SPH) has invested $2m for a 20% stake in DC Frontiers, a company that owns and operates Handshakes, a data analytics platform currently used in the capital markets for relational information about companies and the people who run or own them.
The platform works on both a subscription basis and pay-per-use model, with the former priced at $1,200/mth, with an estimated "few hundred" accounts. The fee is expected to increase as Handshakes adds more countries to its list.
Assuming a current subscription of 200 accounts, SPH paid 3.5x earnings for the company, which intends to use the cash injection to expand to the rest of Asia.
Users for the data miner include issue managers, corporate lawyers, regulatory and enforcement agencies, or simply anybody with a need to suss out a person or entity for due diligence purposes.
The street is generally not positive on SPH due to the structural shift away from its core newspaper printing business, resulting in lower advertising and circulation revenue.
There are 7 Hold and 7 Sell ratings with an average 12-month TP of $3.90.