Verisk (VRSK) Aims To Expand Through Strategic Acquisitions
Zacks Investment Research | Jan 02, 2018 10:26PM ET
On Jan 3, we issued an updated research report on business services provider, Verisk Analytics, Inc. (NASDAQ:VRSK) .
Verisk continues to extend its footprint in new markets through targeted international expansion. The company recently inked an agreement to acquire PowerAdvocate for $200 million to augment its presence in the energy sector. Catering primarily to the global energy firms, PowerAdvocate provides cost intelligence and supply chain solutions that mitigate risks and optimize total cost of production. It also offers key insights into customer’s cost-saving opportunities by analyzing spend and cost data obtained from millions of transactions across thousands of services, materials and equipment categories in the energy industry. With its wide range of proprietary data, it enables various companies to bring transparency in the market and ensure that capital is utilized efficiently.
As Verisk draws on unique data sets to provide predictive analytics and decision support solutions to customers, it is expected to benefit immensely from this acquisition. The company, with its decision support solutions, has facilitated its customers to take informed decisions with greater precision, efficiency and discipline about various risks involved in business. This buyout will bring more enterprises in the energy sector within Verisk’s reach by incorporating PowerAdvocate’s spend data and cost models.
The deal will add to Verisk’s existing pool of customers, giving it greater access to the global markets. Verisk, with PowerAdvocate’s proprietary data set encompassing $2.7 trillion of spending data and machine-learned methods, will provide customers unique insight to increase profitability. Verisk’s revenues are likely to increase significantly as a result of this acquisition, providing greater market strength.
In order to create long-term value for its clients, Verisk has extended its scalable data and analytic solutions by steadily putting resources into overseas markets. The scalability of its products has further led to highly cash-generative businesses characterized by high net margins and relatively low capital intensity. Verisk has outperformed the Zacks Investment Research
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