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Verisk Analytics Agrees to Buy Scottish Energy Research Firm
Verisk Analytics said on Tuesday that it had agreed to acquire the Scottish energy research firm Wood Mackenzie from its private equity owners for 1.85 billion pounds, or about $2.8 billion.
The deal expands Verisk’s presence as a provider of data analytics to the energy market and is part of its strategy to expand internationally, Verisk said.
The private equity firm Hellman & Friedman acquired a controlling stake in Wood Mackenzie in 2012 in a deal that valued the overall business at about £1.1 billion. Charterhouse Capital Partners, which acquired the business from Candover in 2009, retained a smaller stake in the business after the sale to Hellman & Friedman.
Scott G. Stephenson, the Verisk president and chief executive, said in a news release that Wood Mackenzie “has significant opportunities in the global energy, chemicals, metals and mining verticals, a track record of consistent revenue growth and profitability, distinctive and mission-critical solutions, and an impressive management team.”
The transaction is subject to regulatory approval and is expected to close in the second quarter.
Stephen Halliday, the Wood Mackenzie chief executive, will continue to lead the business after the deal and will report to Mr. Stephenson.
Verisk, based in Jersey City, said it intended to finance the transaction through a combination of debt and equity.
Founded in 1844 and based in Edinburgh, Wood Mackenzie posted revenue of £227 million in 2014 and has about 1,000 employees.
Verisk provides risk assessment and data analytics services to a variety of industries, including insurance, financial services and health care. The company posted revenue of $1.75 billion in 2014 and has about 6,100 full-time employees.
Morgan Stanley and Bank of America Merrill Lynch and the law firm Davis Polk & Wardwell are advising Verisk, while Deutsche Bank and Lazard advised Wood Mackenzie.
The law firm Freshfields Bruckhaus Deringer advised Wood Mackenzie’s private equity owners, Hellman & Friedman and Charterhouse.
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