Verisk Sells Health Division for $820m

Data company Verisk Analytics is to sell its healthcare services division to an affiliate of private equity firm Veritas Capital, for a total price of $820 million.

The investment firm will pay $720m in cash for Verisk Health, with a $100m long-term subordinated promissory note and other contingent consideration, according to www.reuters.com . The deal - which is expected to close by the end of June - will see the division renamed, but it will continue to operate independently from its HQ in Waltham, MA.

Salt Lake City-based Verisk Health helps clients such as health plans, Medicare Advantage, Managed Medicaid, employers and life insurance carriers with improvements in care and in process efficiency, as well as supporting compliance. The divestment allows Verisk Analytics to focus on its core area - its remaining businesses work in the energy sector, and include Edinburgh-based research and consulting company Wood Mackenzie, for which it paid £1.85bn in cash just over a year ago. In November, it announced the acquisition of The PCI Group, which offers data and subscriptions research in the chemicals, fibers, films, and plastics sectors - and said it would be merged with Wood Mackenzie.

Verisk Analytics Chairman, President and CEO Scott Stephenson (pictured) says the deal will allow the group 'to focus on businesses more closely aligned with our strategy, distinctives, and global ambitions'. He adds: 'We are glad to have found strong ownership for our healthcare services business. The sale will enhance our focus on proprietary data analytics in our key vertical markets'.

Web site: www.verisk.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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