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Verisk Analytics Inc.: Verisk Analytics, Inc. Announces Closing of Wood Mackenzie Acquisition

JERSEY CITY, N.J., May 19, 2015 - Verisk Analytics, Inc. (Nasdaq: VRSK) (the
"Company"), a leading data analytics provider, today announced that it
completed the acquisition of Wood Mackenzie Limited ("WoodMac"). Wood
Mackenzie is a global leader in data analytics and commercial intelligence
for the energy, chemicals, metals and mining verticals. The purchase price
was £1.85 billion (approximately $2.8 billion, net of foreign currency

"We're pleased to have completed the acquisition of WoodMac, and delighted to
welcome the team into the Verisk family," said Scott Stephenson, president
and chief executive officer of Verisk Analytics. "This is a strategic
acquisition that adds another Verisk-like business in a large, dynamic, and
global vertical. We expect a quick and smooth integration, and are ready to
pursue a range of combined company opportunities starting immediately."

"We're thrilled to be part of Verisk which will give us a larger platform and
broader solution set with which we can continue to serve our customers with
excellence," said Stephen Halliday, chief executive officer of Wood

WoodMac delivered solid results for first-quarter 2015, with revenue growth of
8.7% in GBP and EBITDA growth of 9.5% (excluding exceptional costs), as
disclosed in recent filings. Consistent with comments made at the time of the
announcement, the Company expects WoodMac revenue growth, in GBP, for the
full year in the high single digits with continued strong profitability.

The Company financed the acquisition through:

* an equity offering with net proceeds of $722 million from the sale of 10.6
million shares at $70.00 per share
* bond offerings of $900 million of 4.0% Senior Notes due 2025 and $350
million of 5.5% Senior Notes due 2045
* borrowings of approximately $1.0 billion under its new $1.75 billion
revolving credit facility due May 2020, and cash on hand

As a part of the transaction, the Company repaid the remaining $85 million of
private placement debt.

Pro forma for acquisition debt and as of March 31, 2015, the Company had total
debt, both short term and long term of $3.3 billion and pro forma leverage of
3.4x Debt/EBITDA. The company expects interest expense for 2015 to be $122.7
million. The annualized interest rate based on the capital structure at close
is about 3.8%. The company intends to deleverage to 2.5x Debt/EBITDA by year
end 2016.

Pro forma for the sale of stock and as of March 31, 2015, there were 172.1
million fully diluted shares outstanding.

The Company continues to work to finalize the valuation of acquired
intangibles and currently estimates intangible amortization will be in a
range of $135-140 million in 2015 including the Wood Mackenzie amortization.
Capital expenditures for the Company for 2015 are now expected to be about
$170 million. Fixed asset depreciation and amortization for 2015 is now
expected to be in a range of $120-125 million, reflecting about $110 million
for Verisk excluding WoodMac.

The 2015 normalized tax rate (excluding one-time items) for the combined
company is estimated to be around 37.5%. The Company continues to expect its
cash tax payments to reflect the lower corporate tax rate at Wood Mackenzie.

The transaction is expected to be $0.08 to $0.10 accretive to Adjusted EPS in
the second half of 2015. The Company expects to exclude transaction and
financing related fees and the impact from the purchase price hedge in its
calculation of Adjusted EPS when it reports second-quarter 2015 results.

About Verisk Analytics

Verisk Analytics (Nasdaq: VRSK) is a leading data analytics provider serving
customers in insurance, healthcare, financial services, government and risk
management. Using advanced technologies to collect and analyze billions of
records, Verisk Analytics draws on vast industry expertise and unique
proprietary data sets to provide predictive analytics and decision support
solutions in fraud prevention, actuarial science, insurance coverages, fire
protection, catastrophe and weather risk, data management and many other
fields. In the United States and around the world, Verisk Analytics helps
customers protect people, property and financial assets.


Investor Relations

Eva Huston
Senior Vice President, Treasurer, and Chief Knowledge Officer
Verisk Analytics, Inc.

David Cohen
Director, Investor Relations and Business Analytics
Verisk Analytics, Inc.


Rich Tauberman
MWW Group (for Verisk Analytics)

Forward-Looking Statements

This press release contains forward-looking statements. These statements
relate to future events or to future financial performance and involve known
and unknown risks, uncertainties and other factors that may cause the
Company's actual results, levels of activity, performance or achievements to
be materially different from any future results, levels of activity,
performance or achievements expressed or implied by these forward-looking
statements. In some cases, you can identify forward-looking statements by the
use of words such as "may," "could," "expect," "intend," "plan," "target,"
"seek," "anticipate," "believe," "estimate," "predict," "potential," or
"continue" or the negative of these terms or other comparable terminology.
You should not place undue reliance on forward-looking statements because
they involve known and unknown risks, uncertainties and other factors that
are, in some cases, beyond the Company's control and that could materially
affect actual results, levels of activity, performance or achievements. Other
factors that could materially affect actual results, levels of activity,
performance or achievements can be found in the Company's quarterly reports
on Form 10-Q, annual reports on Form 10-K, current reports on Form 8-K and
the prospectus with respect to this offering filed with the Securities and
Exchange Commission. If any of these risks or uncertainties materialize or if
the Company's underlying assumptions prove to be incorrect, actual results
may vary significantly from the original projections. Any forward-looking
statement in this release reflects the Company's current views with respect
to future events and is subject to these and other risks, uncertainties and
assumptions relating to the Company's operations, results of operations,
growth strategy and liquidity. The Company assumes no obligation to publicly
update or revise these forward-looking statements for any reason, whether as
a result of new information, future events or otherwise.

Notes Regarding the Use of Non-GAAP Financial Measures

The company has provided certain non-GAAP financial information as
supplemental information regarding its operating results. These measures are
not in accordance with, or an alternative for, U.S. GAAP and may be different
from non-GAAP measures reported by other companies. The company believes that
its presentation of non-GAAP measures, such as EBITDA, EBITDA margin,
adjusted net income from continuing operations, adjusted EPS, and free cash
flow, provides useful information to management and investors regarding
certain financial and business trends relating to its financial condition and
results of operations. In addition, the company's management uses these
measures for reviewing the financial results of the company and for budgeting
and planning purposes.
EBITDA is a financial measure that management uses to evaluate the performance
of our segments. In all periods shown here and going forward, the company
defines "EBITDA" as net income before interest expense, income taxes, and
depreciation and amortization of fixed and intangible assets. In previous
periods, this measure also excluded investment income and realized gain on
securities, net.

Although securities analysts, lenders, and others frequently use EBITDA in
their evaluation of companies, EBITDA has limitations as an analytical tool
and should not be considered in isolation or as a substitute for an analysis
of our statement of cash flow reported under U.S. GAAP. Management uses
EBITDA in conjunction with traditional U.S. GAAP operating performance
measures as part of its overall assessment of company performance. Some of
these limitations are as follows:

EBITDA does not reflect our cash expenditures or future requirements for
capital expenditures or contractual commitments.

EBITDA does not reflect changes in, or cash requirement for, our working
capital needs.
Although depreciation and amortization are noncash charges, the assets being
depreciated and amortized often will have to be replaced in the future, and
EBITDA does not reflect any cash requirements for such replacements.

Other companies in our industry may calculate EBITDA differently than we do,
limiting the usefulness of their calculations as comparative measures.


This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Verisk Analytics Inc. via Globenewswire


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