TORONTO (miningweekly.com) – Data analytics provider Verisk Analytics has signed a definitive agreement to acquire Wood Mackenzie (Woodmac) from Hellman & Friedman and other Woodmac shareholders.

The acquisition of Woodmac, a global data analytics and commercial intelligence firm specialising in the energy, chemicals, metals and mining vertical sectors, was expected to give Verisk a foothold at the centre of the global energy market, similar to its current position in the property and/or casualty insurance industry.

The company noted that the transaction would advance its strategy to expand internationally and position the company in markets that related closely to its existing supply chain and climate risk initiatives, which were critical to the global twenty-first-century economy.

Under the terms of the agreement, Verisk would pay £1.85-billion (about $2.8-billion) in cash, subject to closing adjustments. Verisk intended to finance the transaction through a combination of about $2-billion in debt and up to $800-million in equity. Pro forma for the acquisition, Verisk expected to maintain its investment-grade debt ratings and intended to de-lever to about 2.5 times debt and/or earnings before interest, taxes, depreciation and amortisation (Ebitda) by the end of 2016.

For the year ended December 31, Edinburgh-based Woodmac’s revenue and Ebitda were £227-million and £107-million, respectively, representing an Ebitda margin of 47.1%. The transaction was expected to be $0.08 to $0.10 accretive to adjusted earnings a share in the second half of 2015, based on a closing date of June 30. Assuming a full year of 2015 Woodmac’s results, the transaction was expected to be $0.16 to $0.20 accretive for 2015. Both accretion estimates excluded transaction-related fees and adjustment for transitional accounting items.

Woodmac CEO Stephen Halliday would continue to lead the business, reporting to Verisk president and CEO Scott Stephenson.

Morgan Stanley and BofA Merrill Lynch were acting as financial advisers to Verisk, as well as joint lead arrangers on a $2.9-billion bridge financing for the transaction.

Davis Polk & Wardwell was acting as legal adviser to Verisk, while Dickson Minto acted as legal adviser to the Woodmac management team. Deutsche Bank and Lazard acted as financial advisers to Woodmac, and Freshfields Bruckhaus Deringer advised the selling private equity funds affiliated with Hellman & Friedman and Charterhouse Capital Partners.