US-headed News Corp, a global, diversified media and information services company has announced that it has completed the acquisition of the Oil Price Information Service (OPIS) and related assets, including the Coal, Mining, and Metals business from S&P Global and IHS Markit. News Corp also has an agreement to acquire the Base Chemicals business from S&P Global and IHS Markit; that acquisition is expected to close in the coming months.
Founded in 1977, OPIS is a global industry standard for benchmark and reference pricing and news and analytics for the oil, natural gas liquids, and biofuels industries, and a growing provider of insights and analytics in renewables and carbon pricing.
Headquartered in Rockville, Maryland (MD), OPIS also has offices in Mexico, the United Kingdom, France, Romania, and Singapore. The company employs approximately 400 professionals globally.
Dow Jones has a reputation for being a source of truth for business news and information, delivering compelling editorial analysis that is backed by data. By joining forces, and bringing together our complementary methodologies, we further enhance our ability to deliver a premium product for our customers. Today marks the start of an exciting new chapter for our business as we join the Dow Jones family, said Brian Crotty, General Manager of OPIS.
OPIS, a highly profitable and growing digital data, analytics, and insights provider, will join Dow Jones’ professional information business, expanding Dow Jones’ presence in the energy, commodities, and renewables markets.
OPIS will help Dow Jones in its goal of building the leading global business news and information platform for professionals. With its valuable data, which is used as a currency for the industry, OPIS has deep and trusted customer relationships with high renewal rates, and a seasoned management team with an average of 18 years of experience.
This is a historic moment for Dow Jones, reflecting our continued commitment to investing in premium, proprietary data, analysis, and journalism to help our customers make decisions. OPIS will help Dow Jones expand the reach of our information services to new industries and segments. Together we will provide a formidable offering of information and analysis to help the global energy community navigate the rapidly changing landscape, including the ongoing transition to sustainability, said Almar Latour, CEO of Dow Jones and Publisher of The Wall Street Journal.
News Corp acquired OPIS for US$1.150 billion in a cash transaction, subject to customary adjustments (and expects to receive an estimated tax benefit of US$180 million as part of the transaction).
News Corp also has an agreement to acquire the Base Chemicals business from S&P Global and IHS Markit; that acquisition is expected to close in the coming months.
The OPIS acquisition will significantly enhance our ability to provide high-quality, high-margin professional products in the energy sector, including renewables and carbon benchmarking, for which there is urgent demand from serious companies. Both OPIS and Base Chemicals are digital and particularly profitable, and we expect their positive financial impact will be obvious to investors. The fact that both sales were required for regulatory approval of the S&P Global and IHS Markit merger ensured that we were able to make the acquisitions for rather attractive multiples, said Robert Thomson, Chief Executive of News Corp.
