The Boston-based company provides market, cost intelligence and supply chain solutions for the energy sector.
Through its proprietary data set encompassing $2.7 trillion of spending data, and machine-learned methods, PowerAdvocate brings transparency to otherwise opaque markets and ensures that capital can be deployed in an efficient manner.
“The acquisition will expand Verisk’s existing offerings to the energy sector by adding PowerAdvocate’s proprietary spend data and cost models,” said Verisk Chariman, CEO and President Scott Stephenson. “Its solutions are targeted at our existing customers, and will grow more rapidly by being on our platform. These enhanced offerings will provide our customers with unique insight to increase profitability.”
The purchase price is $200 million in cash, funded through existing bank facilities, subject to typical closing adjustments, and an earnout of up to $80 million, subject to the achievement of specific return goals.
“We’re very excited to join Verisk, as this will accelerate our growing business by providing greater access to global markets and Verisk’s existing international customers,” said PowerAdvocate CEO and President Daniel Sullivan. “We offer a unique value proposition that will be further enhanced by leveraging synergies and collaborating with other Verisk business units and their data analytics.”
PowerAdvocate’s 2017 revenue is expected to be about $36 million and is expected to grow at a substantially higher rate than Verisk’s historical average organic annual growth rate of 7 percent to 8 percent.