News Corp announced Monday plans to acquire the Oil Price Information Service (OPIS) and related assets from S&P Global and IHS Markit. Furthermore, the digital data, analytics and insights provider will become part of Dow Jones’ Professional Information Business (PIB). To be clear, PIB includes Dow Jones Risk & Compliance, Dow Jones Newswires and Factiva. News Corp says OPIS have a nearly 100% digital revenue base.
News Corp is acquiring OPIS for $1.150 billion in a cash transaction, subject to usual adjustments. Furthermore, the media company expects to receive an estimated tax benefit of $180 million as part of the transaction. The deal is expected to close in Q4 this year, subject to regulatory approvals. Also, the S&P Global and IHS Markit merger must be consummated.
Founded in 1977, OPIS today 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. At its core, OPIS provides end-to-end pricing and analytics information to the energy industry from the refinery to the retailer.
With this acquisition, Dow Jones will also be providing pricing and news and analytics for the Coal, Mining and Metals end markets through McCloskey, among other brands. In addition, Dow Jones will be well poised to leverage the global transition to renewables and the growth opportunities resulting from emerging energy categories like hydrogen, carbon credits, biofuels, LNG, solar, water and electric vehicles.
OPIS will also 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.
“OPIS will be the cornerstone for a rising commodities, energy and renewables digital business that we are convinced will have a positive impact on Dow Jones and News Corp. We certainly believe OPIS and Dow Jones will be more than the sum of their valuable parts. Dow Jones is ideally positioned to accelerate growth at OPIS, while OPIS will be a powerful pillar, alongside Risk & Compliance, in the fast-growing Dow Jones Professional Information Business.”
Robert Thomson, Chief Executive of News Corp
