Veritas affiliate to acquire Verisk’s energy business for $3.1B

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Data analytics provider Verisk and Veritas Capital announced Oct. 31 they signed a definitive agreement for a Veritas affiliate to acquire Verisk’s energy business, Wood Mackenzie, for $3.1 billion, plus future contingent consideration of up to $200 million. 

The deal, which is subject to customary closing conditions, is expected to close in the first quarter of 2023. 

Wood Mackenzie – which joined Jersey City-based Verisk in 2015 – has provided the energy, renewables and natural resources industries with data, analytics and insights for nearly 50 years.  

“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, who took the helm this spring, said in a statement.  

In the announcement, Verisk said it intends to use the after-tax proceeds to pay down debt and return value to shareholders through share repurchases. 

Shavel added that Wood Mackenzie Co-Presidents Mark Brinin and Joe Levesque “have continued to grow the business by relentlessly innovating on behalf of their clients” and that Verisk is “confident in their bright future as part of Veritas.” 

New York-based Veritas invests in technology and technology-enabled companies that provide products, software and services to government and commercial customers worldwide. Veritas has over $45 billion of assets under management. 

Veritas CEO and Managing Partner Ramzi Musallam said, “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.” 

Looking to the future, Musallam said the acquisition will provide Wood Mackenzie’s customers with more solutions, “from upstream producers who are looking to decarbonize to new energy asset managers who want to optimize their investments.” 

Verisk has undergone major changes in 2022, including: 

• acquiring Canadian company Opta for upfront purchase price of approximately $215.7 million; 
• purchasing Infutor for an initial $225 million; and
• selling its financial services business unit to TransUnion for $515 million.