Verisk Analytics VRSK yesterday announced that it has inked a deal to buy out Genscape — one of the leading global providers of real-time data and intelligence for commodity and energy markets — from Daily Mail and General Trust (DMGT) for $364 million in cash. The deal closure is subject to fulfillment of customary closing conditions.
Founded in 1999, Genscape is engaged in managing a private network of in-field monitors globally, distribution of industry-leading alternative energy data and offering market intelligence across the commodity and energy spectrum (which includes power, oil, natural gas, natural gas liquids, agriculture, biofuels and maritime freight).
So far this year, we observe that shares of Verisk have gained 44.3% compared with 38.4% rise of the industry it belongs and 12.1% increase of the Zacks S&P 500 composite.
Deal Details & Benefits
Genscape will be joining Verisk’s business — Wood Mackenzie. This should enhance Wood Mackenzie’s existing sector intelligence in energy data and analytics and strengthen its research and consultancy across the natural resources sectors.
With limited overlap between current customer base of Wood Mackenzie and Genscape, the acquisition is expected to open up ample growth opportunities through cross-selling of existing solutions to customers of both businesses.
We believe the move will help Verisk strengthen its Energy and Specialized Markets segment, which provides data analytics services across the natural resources value chain including the global energy, chemicals, metals, mining, power and renewables sectors. Revenues from the segment increased 5.9% year over year on a reported basis and 6.1% at organic constant-currency basis in the first-half of 2019.
Scott Stephenson, chairman, president, and chief executive officer of Verisk stated “Genscape and its real-time and historical data, forecasts, analytical insights, tools, and software solutions will be a valuable addition to both Wood Mackenzie and Verisk.”
Zacks Rank & Stocks to Consider
Verisk currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the broader Zacks Business Services sector are Visa V, Fiserv FISV and Accenture ACN, each carrying a Zacks Rank #2 (Buy). Long-term expected EPS (three to five years) growth rate for Visa, Fiserv and Accenture is 16.5%, 12% and 10.3%, respectively.
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