Summary
S&P Global Inc. (formerly McGraw Hill Financial, Inc.) announced on April 15, 2016, the signing of a definitive Stock and Asset Purchase Agreement to sell its J.D. Power and Associates business, along with related assets, to Jefferson Bidco Inc., an affiliate of XIO Group. The agreed-upon consideration for this divestiture is approximately $1.1 billion in cash, subject to customary closing adjustments for working capital and other items. This strategic divestiture represents a significant move for S&P Global, allowing the company to streamline its operations and focus on its core businesses. The sale of J.D. Power, a well-known automotive industry insights and data analytics firm, is expected to close in the third quarter of 2016. Investors should monitor the impact of this transaction on S&P Global's future financial performance and its strategic direction as it continues to evolve.
Key Highlights
- 1S&P Global Inc. (then McGraw Hill Financial) entered into a definitive agreement to sell its J.D. Power and Associates business.
- 2The buyer is Jefferson Bidco Inc., an affiliate of global alternative investments firm XIO Group.
- 3The aggregate consideration for the sale is approximately $1.1 billion in cash.
- 4The transaction includes the sale of all outstanding shares of J.D. Power and other related assets.
- 5The sale is subject to customary closing conditions and is expected to be completed in the third quarter of 2016.
- 6The agreement includes standard representations, warranties, covenants, and indemnification provisions.
- 7This divestiture signals a strategic shift for S&P Global, likely focusing resources on core operations.