Investments in Unconsolidated Affiliates

9 Months Ended

Sep. 30, 2022

Investments in Unconsolidated Affiliates

Investments in Unconsolidated Affiliates

(4)Investments in Unconsolidated Affiliates

DNB is a leading global provider of business decisioning data and analytics. On January 8, 2021, DNB completed its acquisition of Bisnode Business Information Group AB (the “Bisnode acquisition”). In connection with the Bisnode acquisition, DNB issued 6.2 million shares of common stock, which resulted in a decrease in our ownership interest in DNB from 13.0% to 12.8% at that time.

On February 15, 2022, we exchanged 36.4 million shares of DNB common stock and $433.5 million in cash in connection with the acquisition of the remaining Class A units in Optimal Blue Holdco we acquired from Cannae and THL. The number of shares of DNB common stock was valued at $722.5 million based on the 20-day volume-weighted average trading price of DNB for the period ended on February 14, 2022. We recognized a gain of $305.4 million, net of tax of $102.6 million, related to this transaction. As of September 30,

2022, we own 18.5 million shares of DNB common stock for an ownership interest of approximately 4% of DNB’s outstanding common stock.

We hold less than 20% of the outstanding common equity of DNB, but we continue to account for our investment under the equity method because we continue to have significant influence over DNB primarily through a combination of an agreement with certain other DNB investors pursuant to which we agreed to collectively vote together on matters related to the election of DNB directors for a period of three years following the initial public offering of DNB and our investment.

On July 28, 2022, DNB declared a quarterly cash dividend of $0.05 per share payable on September 22, 2022 to DNB’s shareholders of record as of September 1, 2022. We received a cash dividend of $0.9 million, which reduced the carrying value of our DNB investment in our Condensed Consolidated Balance Sheets (Unaudited).

As of September 30, 2022, DNB’s closing share price was $12.39, and the fair value of our investment in DNB was $228.9 million before tax. Assuming a statutory tax rate of 25.3%, the estimated after-tax value of our investment in DNB was $213.0 million.

Summarized consolidated financial information for DNB is presented below (in millions):

	September 30, 2022		December 31, 2021
Current assets	$	666.6	$	718.0
Non-current assets		8,763.1		9,279.2
Total assets	$	9,429.7	$	9,997.2
Current liabilities, including short-term debt	$	936.4	$	1,004.9
Non-current liabilities		4,905.7		5,247.0
Total liabilities		5,842.1		6,251.9
Total equity		3,587.6		3,745.3
Total liabilities and shareholders' equity	$	9,429.7	$	9,997.2

	Three months ended September 30,				Nine months ended September 30,
	2022		2021		2022		2021
Revenue	$	556.3	$	541.9	$	1,629.6	$	1,567.3
Income (loss) before provision (benefit) for income taxes and equity in net income of affiliates		5.7		14.7		(34.8)		(27.5)
Net income (loss)		10.4		18.2		(19.4)		(55.9)
Net income (loss) attributable to DNB		8.0		16.6		(25.1)		(60.1)

Equity in earnings of unconsolidated affiliates, net of tax consists of the following (in millions):

	Three months ended September 30,				Nine months ended September 30,
	2022		2021		2022		2021
Equity in earnings (losses) of unconsolidated affiliates, net of tax	$	0.3	$	1.6	$	(2.1)	$	(6.9)
Non-cash gain related to DNB's issuance of common stock, net of tax		—		—		—		9.9
Gain related to DNB investment, net of tax		—		—		305.4		—
Equity in earnings of unconsolidated affiliates, net of tax	$	0.3	$	1.6	$	303.3	$	3.0