Verisk-WoodMac Deal

US-based Verisk Analytics has agreed to acquire British energy data firm Wood Mackenzie for £1.85bn (€2.59bn, $2.79bn).

The deal was announced on 10 March and will see Wood Mackenzie's private equity owner, Hellman & Friedman, exit its investment.

Verisk said in a statement that it "intends to finance the transaction through a combination of about $2bn in debt and up to $800m in equity. Pro forma for the acquisition, Verisk expects to maintain its investment-grade debt ratings and intends to de-lever to approximately 2.5x Debt/EBITDA by the end of 2016.

"...The transaction is expected to close during the second quarter of 2015, subject to the completion of customary closing conditions, including receipt of regulatory approvals.

Sky News reported the sale of Wood Mackenzie (WoodMac) to Verisk earlier on 9 March.

New Jersey-based Verisk is known primarily for providing risk assessment data to the insurance industry. The Nasdaq-traded firm's stock has risen some 10% so far this year, valuing it at $11.17bn.

Edinburgh-headquartered WoodMack is a private research consultancy focused on gathering and analysing data about the energy industry. Clients include financial services groups and firms in the oil and gas, mining and metals sectors.

WoodMac, founded in 1844, has nearly 800 global clients and competes with energy market data provider IHS.

For the year ended 31 December 2014, WoodMac's revenue and EBITDA stood at £227m and £107m respectively.

San Francisco-based Hellman & Friedman bought a 63% stake in WoodMac from UK buyout group Charterhouse in 2012, in a deal that valued it at £1.1bn.

Post the 2012 deal, WoodMac's management and employees reportedly retained a 24% stake while Charterhouse held a 13% stake.