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McGraw Hill Financial to acquire SNL Financial for $2.225

Staff writer ▼ | July 27, 2015
McGraw Hill Financial has signed a definitive agreement to acquire SNL Financial for approximately $2.225 billion in cash.
SNL Financial
Acquisition   New analytics that expand the Platts platform
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.

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.