Verisk Analytics announces the sale of its energy business, Wood Mackenzie, to Veritas Capital for $3.1 billion .
A strategic decision
Verisk Analytics reports purchase price of $3.1 billion in cash with future consideration conditional. The latter could reach $200 million. The price will be payable at the closing of the transaction.
Wood Mackenzie joined Verisk Analytics in 2015. Since then, the company has been developing strongdata analytics capabilities and positioning itself as a leading energy sector consultancy. The company provides clients with leading data and analytics on renewable energy and the energy transition.
Indeed, this announcement is the latest demonstration of Verisk Analytics’ ongoing efforts to optimize business performance. Earlier this year, Verisk Analytics conducted a thorough review of its portfolio. Subsequently, the company decided to divest its financial services and environmental security businesses.
A will to develop
Thus, this decision is indicative of the company’s desire to refocus on the insurance sector. Lee Shavel, CEO of Verisk, states:
“This transaction best positions Verisk to expand our role as a strategic data, analytics and technology partner to the global insurance industry and, as a result, drive growth and returns that will create long-term value for shareholders. It will also strengthen Wood Mackenzie’s competitive position and support the vital roles both organizations play in their respective industries.”
Veritas brings extensive industry and operational expertise to Wood Mackenzie.
Indeed, the company is a leader in investing in technology and providing products, software and services. Its clients belong to the economic and political world. This agreement advances Wood Mackenzie’s goal of accelerating the transition to a more sustainable future.
The purchase price remains correlated to the usual adjustments such as working capital and corporate debt. As such, Verisk Analytics will use the after-tax proceeds to pay down debt and return value to shareholders through share repurchases. The transaction is subject to regulatory approvals and is expected to occur in the first quarter of 2023.
