JOINT VENTURE FEASIBILITY FOR TWO GLOBAL DATA LEADERS
Client Background
Two of the world’s top four financial information providers recognized that a significant portion of the data they delivered to clients had become commoditized. While this content remained essential to support higher-value services, its declining margins created increasing financial pressure. To address this challenge, the firms explored the possibility of combining their commoditized data services. By consolidating these offerings, they aimed to lower costs, improve efficiency, and restore profitability, while continuing to provide clients with the critical content they depend on.
Our Approach:
Element22 was engaged to assess the feasibility of this initiative. Our team conducted a detailed analysis to:
Identify synergies in data coverage that would expand breadth, depth, and timeliness.
Evaluate operational efficiencies to streamline processes and reduce costs.
Pinpoint complementary contributions where each firm’s unique strengths would enhance the joint offering.
Design safeguards to ensure collaboration strengthened, rather than cannibalized, their existing businesses.
Outcome:
Element22 synthesized its analysis into clear strategic options and recommendations, which were presented directly to senior executives at both firms. The analysis demonstrated the strategic value of combining operations while protecting each company’s core business.
Based on these recommendations, the firms decided to move forward, engaging Element22 alongside a global consulting and outsourcing partner to execute the initiative. The chosen approach was to create a new standalone entity, with Element22 remaining deeply involved to ensure the smooth transfer and ongoing management of selected operations with the partner.
Impact:
The new entity was designed to:
Serve both founding firms at a reduced cost by leveraging scale efficiencies.
Deliver services back to the broader industry, creating a platform for future growth.
Operate under a robust governance, financial, and technology model co-developed by Element22.
This engagement illustrates Element22’s ability to guide global leaders through complex strategic decisions, from concept validation to execution, and to design operating models that create both immediate value and long-term competitive advantage.
