US data group Verisk Analytics has agreed to buy Scottish oil and gas research specialist Wood Mackenzie (WoodMac) for around £1.85billion.
San Francisco private equity firm Hellman & Friedman and other WoodMac shareholders are believed to have received at least two bids for the Edinburgh-based business from trade suitors.
New Jersey-based Verisk said today its acquisition, which is funded with more than£1.3billion in debt and up to £530.3million in equity, would create a global leader in data analytics.
It added: “The transaction advances Verisk’s strategy to expand internationally and positions the company in markets that relate closely to the company’s existing supply chain and climate risk initiatives, which are central to the global economy of the 21st century.”
WoodMac has been providing analysis and advice on energy assets, companies, and markets for more than 40 years, giving clients around the world the insight they need to make better asset investment and portfolio allocation decisions.
Its diverse, blue-chip customer base includes more than 800 international and national energy and metals companies, financial institutions, and governments.
The firm has about 1,000 employees worldwide, with offices in Edinburgh, Dubai, Houston, London, Singapore and Sydney.
Verisk president and chief executive Scott Stephenson said: “Wood Mackenzie is a world-class company and an excellent addition to the Verisk family.
“The culture of Wood Mackenzie is well aligned with that of Verisk, and we are eager to welcome our new colleagues.”
WoodMac chief executive Stephen Halliday said: “This combination is a natural home for the business we’ve built over the years and a great opportunity for our customers and employees.
“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.”
For the year ended December 31, 2014, WoodMac’s revenue and earnings before interest, taxation, depreciation and amortisation were £227million and £107million respectively.
The deal is expected to close during the second quarter of 2015, with Mr Halliday continuing to lead WoodMac on completion.
Lower oil prices are thought to have led to a boom in consultancy services, such as those provided by WoodMac, as energy firms seek to trim operating costs and take a more strategic look at investments.
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