March 10th, 2015
Verisk Analytics to Acquire Wood Mackenzie
JERSEY CITY, N.J. and EDINBURGH, U.K.
Establishes Verisk Analytics as a Leading Provider of Data Analytics in Energy, Chemicals, Metals and Mining
- Combined company will be a global leader in data analytics
- Adds another Verisk-like business with deep vertical expertise, extensive proprietary data assets, a highly recurring revenue model, consistently strong growth, and leading profit margins
- Accretive transaction combines two companies with similar cultures
- Purchase price of £1.850 billion (approximately $2.8 billion) to be funded with about $2 billion in debt and up to $800 million in equity
Verisk Analytics, Inc. (Nasdaq:VRSK), a leading data analytics provider, today announced it has signed a definitive agreement to acquire Wood Mackenzie from Hellman & Friedman and other Wood Mackenzie shareholders. Wood Mackenzie is a global leader in data analytics and commercial intelligence for the energy, chemicals, metals and mining verticals. The acquisition establishes Verisk as a trusted data analytics provider at the center of the global energy market, similar to its position in the property/casualty insurance industry. The transaction advances Verisk’s strategy to expand internationally and positions the company in markets that relate closely to the company’s existing supply chain and climate risk initiatives, which are central to the global economy of the 21st century.
Based in Edinburgh, Wood Mackenzie has a track record of more than 40 years providing objective analysis and advice on energy assets, companies, and markets, giving clients in more than 80 countries around the world the insight they need to make better asset investment and portfolio allocation decisions. Wood Mackenzie’s diverse, blue chip customer base includes more 800+ international and national energy and metals companies, financial institutions, and governments. Wood Mackenzie works with strategy and policy makers, business development executives, market analysts, corporate finance professionals, risk teams, and investors.
Wood Mackenzie leverages predictive models and robust proprietary data gathered over the past century to describe and value assets, forecast their future productivity and value, and provide clients with trusted strategic advice. Wood Mackenzie’s global teams of experts rigorously analyze the data, ensuring a deep understanding of the company’s extensive global data sets and the end markets they describe. Wood Mackenzie advisers work directly with clients to address their business challenges. Wood Mackenzie has approximately 1,000 employees worldwide with offices in Edinburgh, Dubai, Houston, London, Singapore, and Sydney.
“Wood Mackenzie is a world-class company and an excellent addition to the Verisk family,” said Scott Stephenson, president and chief executive officer of Verisk Analytics. “The company 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. Those are all features of a unique and wonderful business.” “The culture of Wood Mackenzie is well aligned with that of Verisk, and we are eager to welcome our new colleagues. We think the people, the opportunity, and the business are a wonderful fit for who we are and what we aspire to be,” concluded Stephenson. “This combination is a natural home for the business we’ve built over the years and a great opportunity for our customers and employees,” said Stephen Halliday, chief executive officer of Wood Mackenzie.
Patrick Healy, Managing Director and Deputy CEO of Hellman Friedman said: “It has been a great privilege to be the partner of Wood Mackenzie. Together we made significant investments in technology and in new product development to further enhance the client user experience.
For the year ended December 31, 2014, Wood Mackenzie’s revenue and EBITDA were £227 million and £107 million, respectively, representing an EBITDA margin of 47.1%. The transaction is expected to be $0.08 to $0.10 accretive to adjusted EPS in the second half of 2015 based on a close date of June 30. The transaction is expected to close during the second quarter of 2015, subject to the completion of customary closing conditions, including receipt of regulatory approvals.
Contact
Investor Relations
Eva Huston
Senior Vice President, Treasurer, and Chief Knowledge Officer
Verisk Analytics, Inc.
201-469-2142 / eva.huston@verisk.com
David Cohen
Director, Investor Relations and Business Analytics
Verisk Analytics, Inc.
201-469-2174 / david.e.cohen@verisk.com
Media
Rich Tauberman
MWW Group (for Verisk Analytics)
202-600-4546 / rtauberman@mww.com
Mary Beth Grover
The Abernathy MacGregor Group (For Hellman & Friedman)
212-371-5999 / mbg@abmac.com
Julia V. Kosygina
The Abernathy MacGregor Group (For Hellman & Friedman)
212-371-5999 / jvk@abmac.com