Verisk Analytics Inc. has agreed to acquire Boston-based PowerAdvocate, which provides market, cost intelligence and supply chain solutions for the energy sector.
Verisk is paying $200 million in cash, funded through existing bank facilities, and an earnout of up to $80 million.
PowerAdvocate's 2017 revenue to expected to be about $36 million and is expected to grow at a much higher rate than Verisk's historical average organic annual growth rate of 7% to 8%, according to Verisk. Estimated 2017 EBITDA for PowerAdvocate is expected to be about $11 million. Additionally, Verisk expects the deal to generate an "attractive" return in excess of its cost of capital.
The deal is expected to close in the fourth quarter.
