News Corp will acquire the Oil Price Information Service (OPIS) and related assets from S&P Global and IHS Markit for $1.15 billion in cash, the company announced on Monday.
The purchase positions News Corp.’s Dow Jones as a provider of benchmark and reference pricing and news and analytics for the oil, natural gas liquids and biofuels industries.
In addition, News Corp. foresees an estimated tax benefit of $180 million as part of the transaction.
Founded in 1977, OPIS will become part of Dow Jones’ burgeoning Professional Information Business (PIB), which includes Dow Jones Risk & Compliance, Dow Jones Newswires and Factiva.
Dow Jones will also be providing pricing and news and analytics for the Coal, Mining and Metals end markets through McCloskey, among other brands.
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The transaction is subject to regulatory approvals and other customary conditions with the consummation of the planned S&P Global merger, which is expected in the fourth quarter of this calendar year.
OPIS expects to generate $129 million in revenue for its current fiscal year ending in November.
The company, which has 400 employees, has grown at a consistent rate of 10% CAGR since 2016, according to HIS Markit, and has continued to grow throughout the 2009 financial crisis, the 2014-2015 oil market downturn and the current pandemic.
The company employees 400 professionals. Headquartered in in Rockville, Maryland, it also has offices in the UK, France, Romania and Singapore.