A $7.7 Billion Data Play: Ares and Clearlake’s High-Stakes Bet on Dun & Bradstreet

The $7.7 billion leveraged buyout of Dun & Bradstreet (D&B) by Clearlake Capital is shaping up to be one of the year’s most consequential deals—not just for its size, but for what it reveals about the evolving landscape of private equity financing and the growing value of data-driven assets. At the heart of the transaction is Ares Management, which is playing a pivotal role in structuring the debt that will fuel the acquisition. Here’s why this deal matters, and what it means for investors.

The Deal Unpacked: A Massive Leveraged Buyout with Strings Attached

The acquisition, expected to close in Q3 2025, values D&B at $7.7 billion including debt. Shareholders will receive $9.15 per share in cash, a 15% premium to the stock’s closing price before the deal was announced. But the real complexity lies in the financing:

• Equity vs. Debt: Clearlake is contributing $4.1 billion in equity, leaving over $3.6 billion to be covered via debt.
• The Bridge Loan: A 364-day bridge facility, initially at $5.75 billion, was secured with help from Ares Credit Funds. This short-term financing will be replaced by a longer-term debt package.

The refinancing phase is critical. Clearlake is negotiating a $5 billion debt package with Ares and a bank consortium led by Morgan Stanley. The proposed terms include a 5% interest rate over a benchmark (likely SOFR) and a 1% discount on the loan. While this pricing reflects investor confidence, it also underscores the risks of over-leveraging in a tightening credit environment.

Why Ares Matters: The Rise of Private Credit in Mega-deals

Ares’s involvement highlights a key trend: private credit firms are increasingly stepping into roles traditionally held by banks. In this case, Ares is not just a passive lender but a strategic partner shaping the financing structure. The firm’s participation in both the bridge loan and refinancing discussions signals its ambition to capture a slice of the $7.7 billion transaction—and the long-term returns tied to D&B’s data assets.

For investors, this raises questions: Is Ares overextending itself by backing a deal with such high debt? Or is it betting correctly on D&B’s revenue growth? The answer lies in the company’s fundamentals.

The Case for D&B: Data as the New Oil

Dun & Bradstreet isn’t just a legacy business information firm—it’s a data powerhouse. Over six years, it has grown revenue by 40% and EBITDA by 60%, while cutting its leverage ratio from 9x to 3.6x. Its database, covering over 400 million businesses globally, is a goldmine for AI-driven analytics. Clearlake’s plan to leverage this data to build AI tools for clients—from supply chain optimization to credit risk assessment—aligns with a market that’s projected to hit $150 billion by 2027.

Yet the risks are significant. The deal requires shareholder approval and regulatory clearance, and D&B has a 30-day “go-shop” period to solicit higher bids. Competitors like Moody’s or S&P Global could emerge, though their own valuation challenges might deter them.

The Bigger Picture: A Template for Future Buyouts?

This deal is a microcosm of two broader trends:
1. Private Equity’s Reliance on Hybrid Financing: Clearlake’s use of both private credit (via Ares) and traditional bank debt (Morgan Stanley-led consortium) reflects a shift toward blended capital structures. This reduces reliance on volatile bank markets but increases complexity.
2. Data’s Premium in M&A: Companies with scalable data assets are commanding ever-higher valuations. D&B’s EBITDA multiple of ~10x (based on its $1.3 billion EBITDA in 2023) is a sign of this premium.

Conclusion: A High-Reward, High-Risk Gamble

The Clearlake-Ares-D&B deal is a masterclass in leveraging data and debt to capture a strategic asset. If executed successfully, it could redefine how private equity firms finance acquisitions in the data economy. But the stakes are immense:

• The Numbers: With $5 billion in debt at 5% interest, annual interest payments alone would total $250 million—a manageable burden if D&B’s revenue growth holds (its 5-year CAGR of 6% is solid but not explosive).
• The Risks: A recession, cybersecurity breach, or regulatory delay could upend the deal. D&B’s 3.6x leverage is low by LBO standards, but refinancing at higher rates post-2025 could strain margins.

For now, the bet is on D&B’s data moat and Clearlake’s operational expertise. If the AI tools they’re developing gain traction, this $7.7 billion gamble could pay off handsomely. But in a world where data is both an asset and a vulnerability, the real test will come when the first tranche of loans comes due—and when the algorithms start delivering.

Investors should monitor two key metrics: D&B’s EBITDA growth post-acquisition and the interest rate environment. Ares and Clearlake have built an audacious play—now the market will decide if it’s genius or hubris.