Acquisitions continue to play pivotal role in
Dun & Bradstreet Corp.
) growth trajectory. Recently, the company acquired the social
data matching business of Fliptop. However, the financial details
of the deal were not revealed.
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Based in San Francisco, Fliptop mainly aggregates social data. It
then makes use of data science to extract information.
DNB believes that with this acquisition it would be able to
associate the most up-to-date social profiles with businesses in
its database. This will enable customers to have a more
comprehensive view of people and businesses, which in turn would
help them in differentiating between leads and targets and devise
a business strategy accordingly.
We believe DNB will continue to pursue strategic acquisitions and
partnerships, particularly in the emerging economies that will
boost its overall growth. The company has entered into
partnerships with local providers in 136 countries including
countries such as Japan and Italy, which have helped it to
penetrate the regional market within a short span of time.
Moreover, the company has also partnered with
) to embed its solution in a customer's CRM application. Also,
its alliance with SugarCRM will help SugarCRM to enlarge its data
offering. It also entered into an alliance with FirstRain
recently, a maker of data analytics software, DNB intends to
combine Fliptop's software with that of FirstRain to create the
social profiles of businesses in its database.
We believe these partnerships will help the company to expand its
data-as-a-service model, which in turn will boost top-line growth
DNB's high-margin business model, strong international growth
potential, emerging market growth opportunities, strategic
investments, incremental cost savings and new product pipeline
will drive growth over the long term.
However, increasing competition from companies including
) will hurt profitability going forward. Also, the company's high
debt level remains a major concern in the near term.