(Reuters) — Verisk Analytics Inc. said on Monday it had agreed to sell its energy research and consulting unit Wood Mackenzie to private equity firm Veritas Capital for $3.1 billion, as the data analytics company looks to streamline its operations to focus on insurance.
In March, Verisk agreed to separate its energy business after a challenge from prominent US hedge fund DE Shaw.
Verisk bought Wood Mackenzie in 2015 from buyout firm Hellman & Friedman. It provides data and analytics for the energy, renewables and natural resources industries.
This year, Verisk has already sold its 3E business, which was part of its energy and specialty markets segment, to investment firm New Mountain Capital, while credit information provider TransUnion has bought Verisk̵7;s financial services unit.
Demand for insurance analytics and risk assessment has strengthened as insurers look for ways to navigate an increase in claims from frequent catastrophes, while facing an uncertain economy and decades of high inflation.
The terms of the deal, which is expected to close in the first quarter of 2023, include an additional contingent payment of up to $200 million in the future for Verisk.