Wood Mackenzie, an analytical firm that provides data and intelligence about energy, chemicals and other industries, has been purchased for $2.8 billion.

Verisk Analytics Inc. (NASDAQ: VRSK), a data analytics provider, said March 10 that it signed a definitive agreement to acquire Wood Mackenzie from Hellman & Friedman and other Wood Mackenzie shareholders.

For four decades, Edinburgh’s Wood Mackenzie has provided analysis and advice on energy assets, companies, and markets, providing clients in more than 80 countries around the world insights into investments and portfolio allocation decisions.

In recent weeks, the company has analyzed Mexico's first round of shallow water opportunities. The firm has analyzed oil prices, rig counts and what’s being spent in the South-Central Oklahoma Oil Province (Scoop).

Wood Mackenzie’s diverse blue chip customer base includes more than 800 international and national energy and metals companies, financial institutions, and governments. Wood Mackenzie works with strategy and policy makers, business development executives, market analysts, corporate finance professionals, risk teams and investors.

“This combination is a natural home for the business we’ve built over the years and a great opportunity for our customers and employees,” said Stephen Halliday, CEO of Wood Mackenzie. “Our teams stand ready to build on the strength of our existing solutions with the benefit of Verisk’s analytic expertise, customer relationships and financial resources.”

At the end of 2014, Wood Mackenzie’s revenue was US$342 million (£227 million) and EBITDA US$161 million (£107 million), representing an EBITDA margin of 47.1%.

The transaction is expected to be $0.08 to $0.10 accretive to adjusted EPS in the second half of 2015 based on a close date of June 30, Verisk said.

“Wood Mackenzie is a world-class company and an excellent addition to the Verisk family,” said Scott Stephenson, president and CEO of Verisk Analytics. “The company has significant opportunities in the global energy, chemicals, metals and mining verticals, a track record of consistent revenue growth and profitability, distinctive and mission-critical solutions, and an impressive management team. Those are all features of a unique and wonderful business.”

The purchase price of $2.8 billion is to be paid in cash, subject to typical closing adjustments. Verisk intends 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 expects to maintain its investment-grade debt ratings and intends to de-lever to about 2.5x debt/EBITDA by the end of 2016.

Morgan Stanley and BofA Merrill Lynch are acting as financial advisers to Verisk Analytics, and BofA Merrill Lynch and Morgan Stanley are acting as joint lead arrangers on a $2.9 billion bridge financing in support of the transaction. Davis Polk & Wardwell LLP is acting as legal adviser to Verisk Analytics in connection with the transaction.

Deutsche Bank and Lazard acted as financial advisers to Wood Mackenzie. Freshfields Bruckhaus Deringer LLP advised the selling private equity funds affiliated with Hellman & Friedman LLC and Charterhouse Capital Partners LLP. Dickson Minto W.S. acted as legal adviser to the Wood Mackenzie management team.

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