Tech investor Veritas Capital has purchased energy analytics firm Wood Mackenzie from its owner, Verisk in a deal worth $3.1 billion, plus future additional contingent consideration of up to $200 million.

Wood Mackenzie provides data, analytics, and insights used within the energy, renewables, and natural resources industry. Since joining Verisk in 2015, Wood Mackenzie has further developed its Lens platform, offering insights into renewable energy and energy transition data and analytics.

“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 CEO.

He added: “It will also further advance Wood Mackenzie’s competitive position and support the vital roles both organisations play in their respective industries.

“As co-presidents of Wood Mackenzie, Mark Brinin and Joe Levesque have demonstrated remarkable leadership and have continued to grow the business by relentlessly innovating on behalf of their clients. We’re proud to have supported Wood Mackenzie’s growth and are confident in their bright future as part of Veritas.”

The announcement comes as Verisk attempts to optimise its business for ‘long-term sustainable growth and value’. After an in-depth portfolio review, Verisk divested its financial services and environmental health and safety businesses earlier this year.

In its purchase of Wood Mackenzie, Veritas hope to further advance its goal of accelerating the transition to a more sustainable future.

“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 Officer and Managing Partner of Veritas.

He added: “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.”

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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.

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