FiscalNote Inks $40 Million Deal To Divest Two Non-Core Assets, Reducing Debt And Sharpening Core Focus

FiscalNote Holdings, Inc. NOTE shares are trading higher premarket on Monday after the company disclosed a deal to divest two portfolio companies, Oxford Analytica and Dragonfly, from its Global Intelligence division to Dow Jones, a division of News Corporation NWS for $40 million.

The sale reflects FiscalNote's ongoing strategy to concentrate on its core Policy platform.

The net proceeds from the sale will allow FiscalNote to return capital, reducing its senior term loan and enhancing its balance sheet.

This move simplifies the business, minimizing complexity while boosting productivity, efficiency, and profitability.

News Corp anticipates receiving a $4 million tax benefit as part of the transaction.

The transaction is expected to close in the first quarter of 2025, pending antitrust clearance in Austria and other customary conditions.

Josh Resnik, FiscalNote’s CEO & President, said, “This divestiture enables us to pay down a significant portion of our senior term loan, resulting in a cumulative paydown of more than 60 percent in the past year. Beyond strengthening our financial position, this move will streamline operations, expand Adjusted EBITDA margins, and accelerate our path to positive free cash flow.”

Almar Latour, CEO of Dow Jones and Publisher of The Wall Street Journal added, “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.”

As of December end, News Corp held cash and equivalents of $1.75 billion.

Also, FiscalNote announced the engagement of John Lee, former Head of Contracts for Palantir‘s U.S. Government Vertical, as a Senior Strategic Advisor.

Price Action: NOTE shares are up 13.3% at $1.585 premarket at the last check Monday.

Read Next:

• Equitable Inks Reinsurance Deal With RGA And Plans To Boost Stake In AllianceBernstein: Details

Image sourced from Shutterstock.