Data analytics provider Verisk (NASDAQ:VRSK) announced the sale of its energy business, Wood Mackenzie. An affiliate of Veritas is acquiring Wood Mackenzie for $3.1 billion in cash. The deal also has a contingent consideration of up to $200 million.
The move is part of Verisk’s strategy to optimize its portfolio, streamline operations, and focus on core insurance business.
Speaking on the deal, Verisk CEO Lee Shavel said that this transaction will expand the company’s “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.”
Earlier this year, Verisk exited its financial services and environmental health and safety businesses as part of its efforts to optimize its performance and deliver sustainable growth in the long term.
Notably, Verisk’s insurance business continues to deliver stellar growth, led by higher subscription revenue.
Jefferies analyst Stephanie Moore sees the divestiture of the energy business as a positive development and believes that Verisk’s focus on the insurance business will enhance shareholders’ value.
Is Verisk a Buy?
On TipRanks, Verisk stock is a Moderate Buy based on seven Buy and three Hold recommendations. Further, analysts’ average price target of $205.60 implies 12.45% upside potential.
TipRanks’ data shows that hedge funds bought 31.6K VRSK stock last quarter. However, insiders sold VRSK stock worth $424.1K. VRSK stock has an Outperform Smart Score of nine out of 10.
Furthermore, investors should note that Verisk will announce its Q3 financials on November 1. Wall Street expects Verisk to deliver earnings of $1.47 in Q3.
