By Mark McSherry — New Jersey-based Verisk announced the sale of Wood Mackenzie, the Edinburgh-based consultancy for the energy, chemicals, metals and mining industries, to New York private equity firm Veritas Capital for $3.1 billion in cash “plus future additional contingent consideration” of up to $200 million.

“Since joining Verisk in 2015, Wood Mackenzie has developed strong data and analytics capabilities and is now advantageously positioned at the nexus of energy industry tailwinds, offering clients leading renewable energy and energy transition data and analytics with the bold purpose of transforming the way the planet is powered,” said Verisk.

Verisk CEO Lee Shavel said: “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.

“It will also further advance Wood Mackenzie’s competitive position and support the vital roles both organizations 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.”

Veritas CEO Ramzi Musallam said: “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 organizations across the value chain.

“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 decarbonize to new energy asset managers who want to optimize their investments.”

The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close in the first quarter of 2023.

Morgan Stanley & Co LLC is acting as financial advisor and Davis Polk & Wardwell LLP as legal advisor to Verisk in connection with the transaction. Gibson, Dunn & Crutcher LLP is acting as legal advisor to Veritas.