McGraw Hill Financial announced that it has signed a definitive agreement to acquire SNL Financial for approximately $2.225 billion in cash. The economic impact to McGraw Hill Financial will be partially offset by tax benefits with an estimated present value of approximately $550 million resulting from the transaction. SNL is privately held by an affiliate of New Mountain Capital LLC and current and former members of SNL management.
SNL’s deep product experience and rich sets of data, analytics and research in areas such as real estate and media strongly complement S&P Capital IQ’s platform in the areas of banking and insurance. SNL also adds new analytics and capabilities that expand the Platts platform across energy markets.
Excluding amortization, the transaction is expected to be accretive to adjusted diluted EPS in 2016, and, on a GAAP basis, in 2018. The Company has also identified approximately $70 million in synergies which are expected to be fully realized by 2019 largely from operational efficiencies and McGraw Hill Financial’s ability to accelerate SNL’s international growth through its global footprint.
Financing and Closing Conditions
McGraw Hill Financial is expected to fund the transaction with approximately $525 million in cash and $1.7 billion in new debt. The transaction is expected to close in the third quarter of 2015, subject to regulatory approvals and customary closing conditions.
About SNL Financial:
Headquartered in Charlottesville, VA, SNL has approximately 3,000 employees based in 10 countries. SNL, founded in 1987, has more than 5,000 customers with deep relationships across banks, insurance companies, corporations, asset managers, power companies and other users. SNL’s areas of coverage include:
- Financial institutions: asset and branch-level analytics; financial, industry, demographic, employment, trade area, and branch data; and global bank and insurance company news;
- Real estate: data on 500+ global REITs, nearly 500 global property companies, and more than 100,000 unique properties and development projects;
- Energy: financial coverage of 225+ public companies; industry forecasts; operational stats for nearly 5,000 electric utilities, natural gas companies, and coal producers; data on interstate pipelines, new power projects and mines, and energy-related emissions;
- Media: hundreds of listed companies, US and European TV networks, global databases including detailed pay TV subscriber information and programming history, and extensive radio coverage;
- Metals and mining: data on more than 60 countries, 300,000+ drill results, nearly 40,000 properties and nearly 3,000 active companies.
Source: McGraw Hill Financial