Wood Mackenzie has been sold by data analytics provider Verisk to private equity firm Veritas Capital for a $3.1bn cash consideration, payable at closing, plus future additional contingent consideration of up to $200m.
The Edinburgh-headquartered consultancy firm has been providing data and analytics, predominantly on the energy, renewables and natural resources industry, for nearly 50 years.
Often referred to as WoodMac, the business was launched as a stockbroker in 1844 and began researching energy markets during the North Sea oil boom in the 1970s.
In 2015, it was bought by New Jersey-based Verisk for £1.85bn, during preparation for a stock market listing.
Early in October, rumours began circulating of a potential bidding war between private equity firms including the Carlyle Group, CVC and BC Partners.
This followed a campaign by US activist investor DE Shaw, urging Verisk to sell assets and focus more on insurance.
“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 chief executive. “It will also further advance Wood Mackenzie’s competitive position and support the vital roles both organisations play in their respective industries.”
New York-based Veritas is an investor in technology and technology-enabled companies that provide products, software and services 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, chief executive 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."
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.
Morgan Stanley is acting as financial advisor and Davis Polk & Wardwell as legal advisor to Verisk in connection with the transaction. Gibson, Dunn & Crutcher is acting as legal advisor to Veritas.
Don't miss the latest headlines with our twice-daily newsletter - sign up here for free.
