News Corp has called on the services of Morgan Stanley for its $US1.15bn ($1.55bn) acquisition of the Oil Price Information Service.
The business, along with other related assets, was snapped up from S&P Global and IHS Markit, as announced this week, and is the biggest acquisition that News Corp, publisher of The Australian, has made over the past decade.
The operation, which has been described as a scaled, highly profitable and consistently growing digital data analytics and insights provider, will become part of Dow Jones’ Professional Information Business.
OPIS has an almost 100 per cent digital recurring revenue base and earnings margins of about 50 per cent, with modest capital spending requirements.
Founded in 1977, it 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.
It provides end-to-end pricing and analytics information to the energy industry from the refinery to the retailer.
With the acquisition, Dow Jones will also be providing pricing and news and analytics for the coal, mining and metals end markets.
It enables Dow Jones to capitalise on the global transition to renewables and the growth opportunities resulting from emerging energy categories such as hydrogen, carbon credits, biofuels, LNG, solar, water and electric vehicles.
Revenue for the business has grown by 10 per cent on average annually and is expected to be $US129m for the year to the end of November.
It generated $US61m of adjusted earnings before interest, tax, depreciation and amortisation for the year to November.
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