Dow Jones to Acquire Dragonfly Intelligence and Oxford Analytica from FiscalNote

Rhea-AI Summary

Dow Jones has announced the acquisition of Dragonfly Intelligence and Oxford Analytica from FiscalNote Holdings for $40 million. The deal, expected to close in Q1 2025, includes a $4 million tax benefit for News Corp. Both companies will operate under Dow Jones Risk & Compliance, enhancing its geopolitical risk and security intelligence offerings.

Dragonfly, with offices in London and Singapore, provides real-time security intelligence to multinational companies and public sector entities. Oxford Analytica, founded in 1975, delivers macroeconomic and geopolitical risk analysis through its global expert network.

This acquisition follows Dow Jones Risk & Compliance's strong performance, with revenue growing 16% year-over-year to nearly $300 million in fiscal 2024. The company recently acquired WorldECR and expanded its stake in Ripjar, demonstrating its commitment to strengthening its risk and compliance services.

Positive

• Acquisition value of $40M with $4M tax benefit for News Corp
• Dow Jones Risk & Compliance revenue grew 16% YoY to nearly $300M in FY2024
• Strategic expansion of geopolitical risk and security intelligence offerings
• Geographic expansion with offices in London and Singapore

Negative

• Transaction subject to regulatory approval in Austria
• Additional integration costs and risks associated with merging operations

Insights

Financial Analyst

The $40 million acquisition of Dragonfly Intelligence and Oxford Analytica marks a significant strategic expansion for Dow Jones in the high-margin risk and compliance sector. The deal's structure, including a $4 million tax benefit, demonstrates efficient capital allocation and financial engineering that enhances the transaction's value proposition for News Corp shareholders.

The acquisition is particularly noteworthy when viewed alongside Dow Jones Risk & Compliance's impressive 16% revenue growth to nearly $300 million in FY2024. This growth rate significantly outpaces the industry average for traditional media businesses, indicating a successful pivot toward high-value, recurring revenue streams. The division's expansion through strategic acquisitions (including WorldECR) and increased investment in Ripjar shows a deliberate strategy to build a comprehensive risk intelligence ecosystem.

The timing of these acquisitions is particularly strategic given three key market dynamics:

• Growing demand for geopolitical risk analysis amid increasing global tensions
• Rising compliance requirements in international trade and finance
• Increasing willingness among corporations to invest in risk management solutions

The integration of Dragonfly's real-time security intelligence and Oxford Analytica's macroeconomic analysis capabilities creates significant cross-selling opportunities within Dow Jones's existing client base. This bundled offering should drive higher customer retention rates and potentially increase average revenue per user (ARPU) through expanded service adoption.

The transaction's relatively modest size relative to News Corp's market capitalization suggests downside risk while offering meaningful upside potential through synergies and market expansion. The deal strengthens Dow Jones's competitive position against specialized risk intelligence providers and diversifies revenue streams away from traditional publishing, potentially warranting a higher multiple for the parent company's stock.

NEW YORK, Feb. 24, 2025 /PRNewswire/ -- Dow Jones today announced it has agreed to acquire Dragonfly Intelligence, a geopolitical and security intelligence provider, and Oxford Analytica, a provider of geopolitical intelligence advisory services from FiscalNote Holdings, Inc. (NYSE: NOTE), for $40 million. The acquisition is expected to close in the first quarter of 2025 and is subject to regulatory approval in Austria and customary closing conditions. Dow Jones's parent company, News Corp, expects to receive a $4 million tax benefit in connection with the transaction.

This is the latest in a series of strategic acquisitions and investments aimed at bolstering Dow Jones's portfolio of specialized news, data, analysis and events for business professionals. Dragonfly and Oxford Analytica will operate as part of Dow Jones Risk & Compliance, complementing its existing product suite with proprietary geopolitical risk and security intelligence, which has seen increasing demand due to heightened international tensions and trade complexity. 

With offices in London and Singapore, Dragonfly provides geopolitical and security intelligence to crisis management, security and risk professionals, helping decision-makers at multinational companies, financial institutions and public sector entities solve complex business and operational challenges. The company delivers real-time intelligence on potential and ongoing security risks, including early warning detection and forecasting to anticipate threats, risk rating systems around potential major disruptions, and personalized access to key analysts. 

Founded in 1975 and based in the UK, Oxford Analytica is a leading provider of macroeconomic and geopolitical risk analysis, helping businesses navigate complex markets and stay ahead of the geopolitical and macroeconomic developments impacting their organizations. Drawing on a worldwide network of experts, the company delivers trusted global insights and seasoned judgments on global issues, and advises clients on strategies, operations, policies and investments.

"The world is experiencing rapid change, evolving at a pace unlike anything witnessed in our lifetime--from technological advancements and shifting geopolitics to changes in the global economy. As a result, more companies and professionals are turning to us for the facts and analysis they need to navigate an increasingly complex landscape," said Almar Latour, CEO of Dow Jones and Publisher of The Wall Street Journal. "The additions of Dragonfly and Oxford Analytica to our business will allow us to further support our customers in assessing geopolitical risks, building on the news, data, analysis and convening power we already provide through our Dow Jones Risk & Compliance service and our daily news coverage."

This acquisition comes at a time of continued growth and expansion for Dow Jones Risk & Compliance. In its fiscal year 2024 earnings, revenue for the business grew 16% year over year to nearly $300 million, driven by continued growth from its data products and services. Additionally, Dow Jones recently acquired WorldECR, a provider of news, data and analysis on global export control and trade sanctions, and announced an expansion in its ownership stake in Ripjar, a global data intelligence software provider. 

These investments underscore the importance of the risk and compliance business to Dow Jones, as well as the company's commitment to becoming a vital information service provider for the growing risk and compliance community. Baker & Hostetler LLP is serving as legal counsel to Dow Jones on this transaction.

About Dow Jones
Dow Jones is a global provider of news and business information, delivering content to consumers and organizations around the world across multiple formats, including print, digital, mobile and live events. Dow Jones has produced unrivaled quality content for more than 130 years and today has one of the world's largest news-gathering operations globally. It is home to leading publications and products including the flagship Wall Street Journal, America's largest newspaper by paid circulation; Barron's, MarketWatch, Mansion Global, Financial News, Investor's Business Daily, Factiva, Dow Jones Risk & Compliance, Dow Jones Newswires, OPIS and Chemical Market Analytics. Dow Jones is a division of News Corp (Nasdaq: NWS, NWSA; ASX: NWS, NWSLV).

About Fiscal Note
FiscalNote (NYSE: NOTE) is the leading SaaS provider of policy and regulatory intelligence. By uniquely combining proprietary AI technology, comprehensive data, and decades of trusted analysis, FiscalNote helps customers manage political and business risk. Since 2013, FiscalNote has pioneered solutions that deliver critical insights, enabling efficient decision making and giving organizations the competitive edge they need. Home to CQ, Roll Call, VoterVoice, and many other industry-leading brands, FiscalNote serves thousands of customers worldwide with global offices in North America, Europe, Asia, and Australia. To learn more about FiscalNote and its family of brands, visit FiscalNote.com and follow @FiscalNote.

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SOURCE Dow Jones & Company, Inc.

FAQ

What is the value of Dow Jones's acquisition of Dragonfly Intelligence and Oxford Analytica?

Dow Jones is acquiring Dragonfly Intelligence and Oxford Analytica from FiscalNote Holdings for $40 million, with an expected $4 million tax benefit for News Corp.

When is the Dow Jones acquisition of Dragonfly and Oxford Analytica expected to close?

The acquisition is expected to close in the first quarter of 2025, subject to regulatory approval in Austria and customary closing conditions.

How much revenue did Dow Jones Risk & Compliance generate in fiscal year 2024?

Dow Jones Risk & Compliance generated nearly $300 million in revenue during fiscal year 2024, representing a 16% year-over-year growth.

What other recent acquisitions has Dow Jones made in the risk and compliance sector?

Dow Jones recently acquired WorldECR, a provider of export control and trade sanctions news, and increased its ownership stake in Ripjar, a global data intelligence software provider.

What services will Dragonfly Intelligence bring to Dow Jones?

Dragonfly Intelligence will bring real-time geopolitical and security intelligence services, including early warning detection, threat forecasting, and risk rating systems for multinational companies and financial institutions.