Verisk Analytics to acquire Wood Mackenzie

logo_verisk-t1Data analytics provider Verisk Analytics is acquiring Wood Mackenzie from private equity firm Hellman & Friedman and other Wood Mackenzie shareholders. Wood Mackenzie provides data analytics and commercial intelligence for the energy, chemicals, metals and mining verticals.

The purchase price is £1.850 billion (approximately $2.8 billion) to be paid in cash. Verisk intends to finance the transaction through a combination of about $2 billion in debt and up to $800 million in equity.

For the year ended December 31, 2014, Wood Mackenzie’s revenue and EBITDA were £2woodmac_logo27 million and £107 million, respectively, representing an EBITDA margin of 47.1%. The transaction is expected to close during the second quarter of 2015. Stephen Halliday, Wood Mackenzie’s CEO, will continue to lead the business, reporting to Verisk president and CEO, Scott Stephenson.

In July 2012 Fusion DigiNet reported that private equity group Hellman & Friedman had taken a 63% stake in Wood Mackenzie in a deal that valued Wood Mackenzie at £1.1 billion pounds (approximately $1.7 billion). Vendor Charterhouse retained a 13 percent interest. Wood Mackenzie’s management and staff held a 24 percent interest.

Based in Edinburgh, Wood Mackenzie’s customer base includes 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. The company 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.”

USA, Jersey City, NJ and UK, Edinburgh

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Verisk acquires energy information business Genscape from DMGT for GBP 297M

Verisk logoThe Daily Mail and General Trust, owner of the Mail titles, has sold its energy information business Genscape for GBP 297 million to US firm Verisk. Genscape collects data and offers forecasts and analytics to customers in the market, as well as providing software solutions.

New York-listed Verisk, which also provides risk analysis to the insurance sector, acquired the energy consultancy Wood Mackenzie for GBP 1.85 billion in 2015. Genscape will become part of Wood Mackenzie.

DMGT chief executive Paul Zwillenberg said, “This transaction marks another major milestone in DMGT’s continued transformation and is in line with our strategy. It will further increase the focus of the portfolio and will result in DMGT operating in five sectors, compared to ten in 2016.”

He added that the sale of Genscape was “consistent with our strategic priorities” and would add more than GBP 200 million net cash to the company’s balance sheet.

UK, London, USA, Louisville, KY & Jersey City, NJ

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Hellman & Friedman takes controlling stake in Wood Mac

Private equity group Hellman & Friedman is to take a majority stake in energy analysis group Wood Mackenzie in a deal that values the company at £1.1 billion pounds ($1.7 billion). Wood Mac produces research on the oil, gas, metals and power markets

Vendor Charterhouse will retain a 13 percent interest. The sale means Charterhouse has seen its initial investment double in value, having repaid nearly £150m of the £420m debt it used to acquire Wood Mackenzie from Candover for £553m in 2009.

Hellman & Friedman will take a 63 percent stake in the business, while Wood Mackenzie’s management and staff will hold a 24 percent interest in the company.

Wood Mac’s management and staff led by Chief Executive Stephen Halliday will hold a 24 percent equity stake in the company, valued at 132 million pounds under the Hellman deal.

Wood Mac is projected to make EBITDA of 88 million pounds in 2012, rising to 100 million in 2013.

UK, Edinburgh, Scotland