Verisk sells energy unit Wood MacKenzie for $3.1b for insurance focus

Global insurance data analytics provider  Verisk will sell its energy business unit, Wood MacKenzie, to technology investment group Veritas Capital for $3.1 billion in cash with a potential for a $200 million top-up.

The deal is the latest in a string of asset disposals designed to streamline Verisk’s offer towards the insurance industry. Verisk divested its financial services and environmental health and safety businesses earlier this year citing “efforts to optimize the business for peak performance and long-term sustainable growth and value.”

“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,” Verisk CEO Lee Shavel said. “It will also further advance Wood Mackenzie’s competitive position and support the vital roles both organizations play in their respective industries.”

Verisk intends to use the after-tax proceeds to pay down debt and remunerate shareholders via share repurchases.

The transaction is expected to close in Q1 2023 following completion of customary closing conditions, including regulatory approvals.

Wood Mackenzie has been providing data, analytics, and insights to power the energy, renewables, and natural resources industry for nearly 50 years, including via the Wood Mackenzie Lens© platform.

Wood MacKenzie joined the Verisk group in 2015.

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