US-based data analytics provider Verisk has signed a definitive agreement with private equity firm Veritas Capital to divest its energy business unit, Wood Mackenzie, to one of the latter’s affiliates for $3.1bn in cash.
Verisk will also receive an additional contingent consideration of up to $200m in the future.
Wood Mackenzie, which was acquired by Verisk in 2015, provides data, analytics, and insights concerning the energy, renewables, and natural resources sectors.
The energy business unit’s Lens platform is said to enable analytics and insights to drive critical decisions for its clients.
Verisk CEO Lee Shavel said: “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.
“It will also further advance Wood Mackenzie’s competitive position and support the vital roles both organisations play in their respective industries.”
Veritas Capital invests in technology and technology-enabled companies that offer critical products, services, and software to government and commercial customers globally.
The investment firm is expected to further advance Wood Mackenzie’s goal of expediting the transition to a more sustainable future.
Veritas Capital CEO and managing partner Ramzi Musallam said: “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.
“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 optimise their investments.”
The deal, which is subject to regulatory approvals and other customary conditions, is anticipated to close in Q1 2023.