McGraw Hill Financial Pays $2.2 Billion for SNL Financial
Deal highlights growing value of data and information services.
McGraw Hill Financial has agreed to buy SNL Financial for more than $2.2 billion in a move that shows the growing value of data and information services in the B2B landscape.
The Wall Street Journal reports that McGraw Hill emerged as the winner from a group of interested buyers that included Hearst Corp., whose B2B division has blossomed into one of the company’s most successful units.
While SNL brings quasi-publishing operations into the fold with a number of newsletters, blogs and websites, McGraw Hill Financial has pivoted sharply away from its publisher roots in recent years. The company officially broke away from magazines, selling off its construction media division—now, Dodge Data and Analytics—for $320 million last fall.
"We are enthusiastic about SNL because it is a fast-growing, highly complementary subscription-based business that will enable us to accelerate our strategy to be the leading provider of transparent and independent benchmarks, analytics, data and research across the global capital, commodity and corporate markets," says Douglas Peterson, president and CEO of McGraw Hill Financial, in a statement.
Though SNL’s services largely complement McGraw Hill’s existing offerings, in some cases, duplication exists. The companies say there’s about $70 million in synergies they’ll be able to realize by 2019 after sorting out “operational efficiencies.”
Wall Street seemed less enthusiastic about the deal. McGraw Hill stock has fallen more than seven points from Friday’s close of 105.60 to 98.40, as of Tuesday afternoon.