Veritas Capital to acquire energy consultancy Wood Mackenzie from Verisk

US-based private-equity firm Veritas Capital through its affiliate has agreed to acquire Wood Mackenzie, an energy consultancy of Verisk, for $3.1 billion in an all-cash deal.

Verisk also stands to receive an additional contingent consideration of up to $200 million in the future.

In March 2015, Verisk Analytics acquired Wood Mackenzie from Hellman & Friedman and other Wood Mackenzie shareholders for £1.85 billion.

Wood Mackenzie’s platform Lens delivers quality data, analytics, and insights to drive the energy, renewables, and natural resources industry.

Verisk is expected to focus more on the insurance industry following the disinvestment of the energy consultancy.

The data analytics and risk assessment firm will use the after-tax proceeds to clear off debt and repurchase shares to return value to shareholders.

Lee Shavel — Verisk CEO 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 organizations play in their respective industries.”

The divestiture of the energy consultancy also forms part of Verisk’s plans to advance the business for significant performance and long-term sustainable growth and value.

Veritas Capital to acquire energy consultancy Wood Mackenzie from Verisk. Photo courtesy of Tysto/Wikimedia Commons.

Ramzi Musallam — Veritas Capital CEO and Managing Partner said: “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 optimize their investments.”

Expected to close in the first quarter of 2023, the sale of the energy consultancy is subject to customary closing conditions and regulatory approvals.

Gibson, Dunn & Crutcher is serving as legal advisor to Veritas Capital, while Morgan Stanley & Co is serving as financial advisor and Davis Polk & Wardwell as legal advisor to Verisk.

Earlier this year, Verisk divested its financial services and environmental health and safety businesses.