Includes Ownership of Pictometry Subsidiary and Extensive Image Library
Verisk Analytics, Inc. (Nasdaq:VRSK) has signed an agreement to acquire EagleView Technology Corporation (“EVT”), the parent company of Pictometry International Corp., and Eagle View Technologies, Inc.
EVT is an acknowledged leader in the United States of geo-referenced aerial image capture and visual-centric data analytics and solutions to insurers, contractors, government, and commercial customers. The acquisition will accelerate Verisk’s position as a key provider of data, analytics, and decision support solutions based on aerial imagery.
“The acquisition of EVT advances our position in the imagery analytics market, adding new municipal and commercial customers. The transaction supports the aerial imagery solution development that has been under way at our Xactware unit,” said Scott Stephenson, president and chief executive officer of Verisk Analytics. “We believe we can build on the comprehensive coverage of EVT’s library to expand solutions to our customers, including underwriting and, over time, international solutions as well. We look forward to combining the strong business built by the EVT team with Verisk’s analytical capabilities and unparalleled customer relationships in the property/casualty insurance market.”
The purchase price is $650 million to be paid in cash to stockholders of EVT. Verisk expects to receive approximately $25 million in tax benefits as part of the transaction. In addition, Verisk will reduce the cash payment by approximately $13 million to reflect an existing minority equity ownership in EVT. The transaction is expected to close by July 15, 2014, subject to the completion of customary closing conditions, including receipt of regulatory and shareholder approvals. Verisk expects to use cash on hand and available capacity under its revolving credit facility to fund the purchase. The transaction is expected to be neutral to adjusted EPS in 2014.
About EagleView Technology Corporation
EagleView Technology Corporation is a leading provider of aerial imagery, data analytics, and GIS solutions serving the commercial, government, and public utility sectors. The company’s patented image capture processes and 3-D modeling algorithms coupled with property-centric analytic tools empower end-user workflows with scalable, efficient, and highly accurate answer sets in support of property claims, risk management, emergency response, assessment, corridor mapping, and more. For more information, visit www.eagleview.com or www.pictometry.com.
Source: Verisk Press Release