JERSEY CITY, NJ, Feb. 22 12, 2022 (GLOBE NEWSWIRE) — Verisk (Nasdaq: VRSK), a leading global data analytics provider, today announced that it has entered into a definitive agreement to sell Verisk Financial Services, its financial services business unit, to TransUnion (NYSE: TRU), a global information and knowledge company, for a cash consideration of $515 million paid at closing.
Verisk Financial maintains the largest consortia of financial institutions to provide proprietary information on competitive portfolio performance, benchmarking, decision algorithms and trading insights. It also offers customized analytical services to major financial institutions, payment providers, alternative lenders, regulators and retailers around the world. With teams in eight countries, Verisk Financial serves the largest companies in the payments ecosystem and provides competitive research, predictive analytics, modeling and consulting services. Verisk Financial also handles merchant fraud, regulatory compliance and consumer bankruptcy for financial institutions around the world. Verisk Financial’s core business, Argus Information & Advisory Services, is a long-time strategic partner of TransUnion.
The sale of Verisk Financial follows Verisk’s recently announced agreement to sell its 3E business and marks the next step in the company’s portfolio shaping strategy to focus more on its core businesses and stimulate value creation.
“Last year, we began a comprehensive portfolio review to identify the most value-creating opportunities available to Verisk and best position our business for continued sustainable growth. With the sale of Verisk Financial to TransUnion, we are focusing more on our key growth drivers, while unlocking value for our shareholders,” said Scott Stephenson, Chairman and CEO of Verisk. “Beyond the benefits to our shareholders, this transaction will allow the Verisk Financial team to continue to execute on its long-term strategy and commitment to providing unique and empowering solutions to the financial services industry.”
Verisk Chief Financial Officer and Group President, Lee Shavel, said, “Verisk Financial has continually strengthened its offerings, deepened its customer relationships and broadened the goals of the customers it supports. Over the past four years, Verisk Financial Group has made significant strategic and operational changes that will benefit the company and its customers in the long term.
Chris Cartwright, President and CEO of TransUnion, said, “Verisk Financial is a distinct company with authoritative and proprietary data, particularly from the consortium of data and analytics provided by Argus lenders. TransUnion’s broad range of data, analytics and technology enhances Verisk Financial’s existing data set and expands its potential market while providing valuable innovation to consortium members.
In 2021, on a reported basis, Verisk Financial generated $143 million in revenue and $23 million in adjusted EBITDA. At the business unit level, Verisk Financial generated $41 million of adjusted EBITDA before corporate allocations and one-time discrete costs. Verisk intends to return after-tax proceeds to shareholders through share buybacks. The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close in the second quarter of 2022. Goldman Sachs & Co. LLC is serving as financial advisor and Davis Polk & Wardwell as legal advisor to Verisk as part of the transaction.
Verisk (Nasdaq: VRSK) provides predictive analytics and decision support solutions to customers in the insurance, energy and specialty markets, and financial services industries. More than 70% of FORTUNE 100 companies rely on industry-leading enterprise technologies to manage risk, make better decisions and improve operational efficiency. The Company’s analytical solutions address insurance underwriting and claims, fraud, regulatory compliance, natural resources, disasters, economic forecasting, geopolitical risk, as well as environmental, social and governance (ESG). Celebrating its 50th anniversary, the company continues to make the world a better, safer and stronger place, and fosters an inclusive and diverse culture where all team members feel like they belong. With more than 100 offices in nearly 35 countries, Verisk consistently achieves Great Place to Work certification. For more information: Verisk.com, LinkedIn, Twitter, Facebook and YouTube.
Head of Investor Relations
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