McGraw Hill Financial has reached a definitive agreement to sell J.D. Power to XIO Group, a global alternative investments firm, for $1.1 billion in cash.
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The transaction is expected to close during the third quarter of 2016 and is subject to regulatory approvals and customary closing conditions.
"We are very pleased with this outcome. The transaction represents good value for our shareholders and positions J.D. Power for continued success," said McGraw Hill Financial President and Chief Executive Officer Douglas L. Peterson.
"Our portfolio will now be even more focused on financial intelligence businesses with a common set of attributes. The businesses are scalable, they are global and they all have market-leading positions."
McGraw Hill Financial announced in October 2015 that it would commence a process to explore strategic alternatives for J.D. Power which is a global marketing information services company providing performance improvement, social media and customer satisfaction insights and solutions.
Mr. Peterson added, "J.D. Power is a phenomenal brand. We are proud of all of the contributions J.D. Power employees have made to this Company."
Joseph Pacini, Chief Executive Officer of XIO Group, stated, "We have enormous respect for J.D. Power and its experienced and successful management team.
"We are delighted to be the partner of choice and to further help grow J.D. Power given our world-class international team, significant capital resources and unique access to untapped opportunities in fast growing regions."
Headquartered in London, XIO Group is a global alternative investments firm with operations in the United Kingdom, Germany, Switzerland, Israel, Hong Kong and mainland China.
XIO Group's strategy is to identify and invest in market-leading businesses located across North America and Europe and help these companies to capitalize on untapped opportunities in fast growing markets, particularly in Asia.
On April 27, 2016, subject to shareholder approval, McGraw Hill Financial will be renamed S&P Global. ■