Relx has snapped up Leeds-based software group TruNarrative as the FTSE media giant continues to beef up its business through a string of acquisitions.
TruNarrative, which was founded in 2016 and offers software that helps customers reduce risk and financial crime, will merge with the company’s LexisNexis Risk Solutions division.
The company did not disclose the value of the deal but sources told City A.M. it was valued at roughly £130m.
Relx said the acquisition would help bolster its rapidly-growing risk division, which posted 10 per cent revenue growth in the first half of the year.
“Organisations are seeking solutions that help them comply more easily with evolving regulations and prevent financial crime, so they can focus more on growing their businesses,” said Rick Trainor, chief executive of Lexis Nexis risk solutions and business services.
“The TruNarrative platform aligns with our financial crime compliance and fraud solutions, since it allows regulated organisations, such as banks, payment companies, non-bank financial institutions and designated non-financial businesses, to orchestrate their end-to-end compliance obligations, meeting onboarding and transaction monitoring requirements with lower customer friction.”
Relx, which is the UK’s 12th largest by market capitalisation, has been pumping around £300m per year on average into acquisitions as it looks to move away from its traditional print revenue towards data and analytics.
Recent major deals include the $830m takeover of Threat Matrix in 2018 and a $480m deal for Emailage last year. It has also snapped up a number of smaller UK-based tech firms in recent years.
However, the rate of inorganic growth slowed in the first half of the year, with Relx forking out just £46m on five deals.
It has also been forced to contend with a sharp downturn in revenue from its exhibitions division due to the pandemic.
But in a sign of recovery Relx earlier this year said it would hike its full-year dividend and forecast further moderate underlying growth in 2021.