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Article - May 13, 2024

Data & Information Services: AI, Verticalization, and Actionable Insights

From data-driven research and consulting to pure-play data providers to value-added solutions, the data and information services sector offers substantial runway for expansion. Service providers that can combine both public and proprietary data to provide actionable insights and improve strategic decision-making are poised for long-term growth.

Below, senior professionals in our Business Services Group and Technology Group share what’s driving M&A in the space and how investors can tap into its value-creation potential.

An Evolving Sector With Room to Grow

Several trends are generating growth and heightened investor interest in data and information services. For starters, forward-thinking providers are accelerating their adoption of generative AI (GenAI) to enhance their data capabilities through data, pattern, and context management as well as sentiment and predictive analysis.

“GenAI stands to significantly impact data and information services, offering opportunities to drive efficiencies, differentiation, and added value,” says Mat Tsui, a director in the Technology Group. “The businesses that leverage GenAI to better focus their expertise on value-added insights will be prioritized by investors.”

The verticalization of insights is also creating opportunities for expansion. Data and information services companies with deep industry datasets and subject matter experts are differentiating themselves from broader competitors. These industry specialists are sought-after opportunities as they have highly unique positions and strong reputations in their respective fields.

At the same time, a shift is underway to merge pure data providers with human-led insights. “With so much data available, there’s a growing need for highly specialized experts that can dive into the data to solve problems and create value for customers,” says Julien Oussadon, a managing director in the Technology Group.

Finally, ESG and its related segments are powering demand for robust and holistic data. “ESG considerations are becoming more integrated into day-to-day and strategic operations in most organizations,” explains Brian Titterington, a managing director in the Technology Group. “Data and information services providers that help businesses to make the right data-backed decisions and evolve in this fast-moving environment will be critical partners.”

Exemplars Across the Ecosystem

Several Harris Williams clients exemplify the investment opportunity in data and information services. Each has found valuable ways of analyzing and interpreting specialized data to help clients unearth meaningful insights, drive better and faster decisions, and improve productivity.

PEI is a business intelligence company with a unique combination of vital and high-value data, driving strategic decisions across the private markets landscape. PEI’s brand heritage is strong and continues to grow, fueled by market leading journalists, researchers, data, and networks dedicated to a range of sectors.

“PEI’s synergistic intelligence, data, and relationships across the private markets provide a differentiated platform for continued momentum,” says Thierry Monjauze, a managing director in the Technology Group. “In private markets, where data is scarce, PEI gives investors an edge to outperform competitors through value-added insights.”

Human-Led, Tech Empowered

Data and information services is a nascent sector with substantial white space for growth. There are many ways to characterize players in the space, including data-driven research and consulting businesses, pure-play data providers, and value-added solutions. While each offers growth potential and M&A opportunity, the companies offering a combination of tailored data and human-led expertise will be highly sought after.

The future is bright for data and information services providers that offer unique and actionable insights to their business customers. To discuss the landscape of M&A opportunities across data and information services, please contact our senior professionals.

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Contacts

Harris-Williams Bio-Crop 0099 0596 DerekLewis

Derek Lewis

Managing Director
Business Services

Harris-Williams Bio-Crop 0004 0115 ThierryMonjauze

Thierry Monjauze

Managing Director
Technology

Harris-Williams Bio-Crop 0029 titterington brian-2

Brian Titterington

Managing Director
Technology

Harris Williams Bio-Crop 0000 065 BryceWalker

Bryce Walker

Managing Director
Business Services

Harris-Williams Bio-Crop 0036 MatTsui Tie

Mathew Tsui

Director
Technology

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