Comprehensive M&A data with integrated detailed company information

Verisk opens up Rulebook deal
Posted on Tuesday, 04 December 2018 07:21
Verisk Analytics has reached an agreement to acquire business intelligence and software group Rulebook for USD 87.00 million in cash.

The buyer, billed as a leading data analytics provider for the insurance, energy and specialised markets industry, will fund the payment using cash on hand and existing bank facilities, subject to typical closing adjustments.

Shares in Verisk were down slightly at USD 123.32 on 30th November, the last trading day prior to the announcement.

This valued the company at USD 20.30 billion, a significantly higher value than when stocks were priced at USD 22.00 apiece and gave the business a market capitalisation of USD 2.50 billion at the time of its initial public offering in 2009.

News comes 12 months after Verisk paid USD 280.00 million for Power Advocate and GBP 250.00 million for Sequel Business Holdings.

The latter, together with Rulebook, will help enhance the acquiror’s leading position as a provider of insurance software.

Closing of the acquisition is subject to the usual raft of approvals and is expected before the end of the year.

Rulebook’s main operation is a pricing engine used by the London insurance market for internal pricing and underwriting, as well as external distribution.

In addition, the company has data analytics offerings that help develop business intelligence for clients to enable historical, current and predictive views of business operations.

Rulebook’s platform is used by some of the leading carriers in the London insurance sector, providing greater accuracy and better control over the pricing and distribution processes.

Verisk is expecting the transaction to boost adjusted earnings per share in 2019, while generating an attractive return in excess of the buyer’s cost of capital.

Ian Summers, chief executive of Sequel, said: “The acquisition will expand Verisk's existing offerings to the specialty insurance market by adding Rulebook's proprietary pricing and management information engines to Sequel's specialised software suite.

“These enhanced offerings will provide our customers with more efficient methods of distribution and significantly improved data analytics capabilities.”

Verisk generated revenue of USD 1.78 billion in the nine months to 30th September 2018, up 13.1 per cent from USD 1.57 billion in the corresponding period of 2017.

Adjusted earnings before interest, taxes, depreciation and amortisation totalled USD 841.10 million in the opening three quarters of 2018 and increased 10.2 per cent from USD 763.50 million in Q1-3 2017.

© Zephus Ltd