Verisk offloads energy business for £2.6 billion; renews focus on insurance industry

Data analytics and risk assessment firm to evolve role as "strategic partner" to insurers

Verisk offloads energy business for £2.6 billion; renews focus on insurance industry

Mergers & Acquisitions

By Roxanne Libatique

Verisk, a data analytics and risk assessment firm, has announced it will sell its energy business to Veritas Capital for $3.1 billion (approx. £2.69 billion) – a move that will enable the tech giant to focus on the insurance industry.

The parties announced the signing of a definitive agreement on October 31, 2022, under which an affiliate of Veritas has agreed to buy 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.

Wood Mackenzie provides data, analytics, and insights to power the energy, renewables, and natural resources industry. The Wood Mackenzie Lens platform enables world class analytics and insights to drive critical decision making for the company’s longstanding clients that operate in the rapidly evolving energy sector

“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 organisations 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.”

The sale of Wood MacKenzie shows 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.

The total purchase price of the Wood McKenzie deal is subject to typical adjustments for, among other things, the working capital and the debt of the business at closing. Verisk will use the after-tax proceeds to pay down debt and return value to shareholders through share repurchases.

Veritas Capital is a longstanding technology investor with more than $45 billion of assets under management and focuses on companies operating at the intersection of technology and government. It invests in companies that provide critical products, software, and services, mainly technology and technology-enabled solutions, to government and commercial customers worldwide.

“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 organisations across the value chain,” said Ramzi Musallam, CEO 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 decarbonise to new energy asset managers who want to optimise their investments.”

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