Verisk, a leading global data analytics provider, and Veritas Capital (“Veritas”), a leading investor at the intersection of technology and government, announced today the signing of a definitive agreement in which a Veritas affiliate has agreed to acquire Verisk’s Energy business, Wood Mackenzie, for $3.1 billion in cash consideration payable at closing plus future additional contingent consideration of up to $200 million.
For nearly 50 years, Wood Mackenzie has been a globally recognized industry leader in providing quality data, analytics, and insights used to power the energy, renewables, and natural resources industries. The Wood Mackenzie Lens platform enables world-class analytics and insights to drive critical decision making for the company’s long-standing clients at the forefront of the rapidly evolving energy sector. Wood Mackenzie has developed strong data and analytics capabilities since joining Verisk in 2015, and is now advantageously positioned at the nexus of energy industry tailwinds, offering clients leading renewable energy and energy transition data and analytics with the bold goal of transforming the way the planet is powered.
“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 shareholder value,” said Lee Shavel, Verisk CEO. “It will also further advance Wood Mackenzie’s competitive position and support the vital roles both organizations play in their respective industries.”
“As co-presidents of Wood Mackenzie, Mark Brinin and Joe Levesque have demonstrated remarkable leadership and have continued to grow the business by relentlessly innovating on behalf of their clients. We’re proud to have supported Wood Mackenzie’s growth and are confident in their bright future as part of Veritas,” Shavel added.
The announcement is the latest demonstration of Verisk’s continued efforts to optimize the business for peak performance and long-term sustainable growth and value. After an in-depth portfolio review, Verisk divested its financial services and environmental health and safety businesses earlier this year.
Veritas brings deep sector knowledge and operational expertise to Wood Mackenzie. As a premier investor in technology and technology-enabled companies that provide critical products, software, and services to government and commercial customers worldwide, the firm is uniquely positioned to further advance Wood Mackenzie’s goal of accelerating the transition to a more sustainable future.
“Drawing from its decades of leadership and innovation, Wood Mackenzie is playing a vital role at the forefront of the global energy transition by providing essential data and insights to organizations across the value chain,” said Ramzi Musallam, Chief Executive Officer and Managing Partner of Veritas. “In partnership with Wood Mackenzie leadership, and with the strong backing of our strategic investment, we have an opportunity to enhance and expand the datasets and solutions the company provides to its growing customer base, from upstream producers who are looking to decarbonize to new energy asset managers who want to optimize their investments.”
The total purchase price is subject to typical adjustments for, among other things, the working capital and the debt of the business at closing. Verisk intends to use the after-tax proceeds to pay down debt and return value to shareholders through share repurchases.
The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close in the first quarter of 2023.
In a separate press release to be issued tomorrow, Verisk will announce its third-quarter 2022 results. Details on the quarterly announcement and investor teleconference to be held on Wednesday, November 2, 2022, can be found at https://investor.verisk.com.
Morgan Stanley & Co LLC is acting as financial advisor and Davis Polk & Wardwell LLP as legal advisor to Verisk in connection with the transaction. Gibson, Dunn & Crutcher LLP is acting as legal advisor to Veritas.