Verisk to sell financial services arm

Data analytics provider Verisk has announced that it has entered into a definitive agreement to sell Verisk Financial Services, its financial services business unit, to TransUnion for US$515 million (about AU$709.46 million) in cash consideration, paid at closing.

Verisk Financial maintains the largest financial institution consortia to provide portfolio performance insights, benchmarking, decisioning algorithms and business intelligence. It also offers customised analytic services to financial institutions, payments providers, alternative lenders, regulators and retailers across the globe. Verisk Financial’s leading business, Argus Information & Advisory Services, is a longstanding strategic partner of TransUnion.

The sale of Verisk Financial follows Verisk’s agreement to sell its 3E business and marks another step in the company’s strategy to sharpen its focus on its core businesses.

“Last year, we began a comprehensive portfolio review to identify the most value-creating opportunities available to Verisk and best position our company for continued sustainable growth,” said Scott Stephenson, chairman, president and CEO of Verisk. “With the sale of Verisk Financial to TransUnion, we are sharpening our focus on our core growth engines, while unlocking value for our shareholders. Beyond the benefits to our shareholders, this transaction will ensure the Verisk Financial team can continue to execute on their long-term strategy and commitment to providing unique and enabling solutions to the financial services industry.”

“Verisk Financial has continuously strengthened its offerings, deepened its relationships with clients and broadened the client objectives it supports,” said Lee Shavel, chief financial officer and group president of Verisk. “Over the past four years, the Verisk Financial group has made significant strategic and operational shifts that will benefit the business and its clients in the long run.”

“Verisk Financial is a distinctive business with authoritative, proprietary data – particularly from Argus’s consortium of lender-contributed data and analytics,” said Chris Cartwright, president and CEO of TransUnion. “TransUnion’s broad range of data, analytics and technology enhances Verisk Financial’s existing data set and expands their addressable market while delivering valuable innovation to members of the consortium.”