Joins OPIS In Expanded Dow Jones Energy,
Chemicals and Sustainability Vertical
News Corp announced that it has completed the acquisition of the
Base Chemicals business from S&P Global Market
Intelligence.
The business will operate under the name Chemical Market
Analytics by OPIS, a Dow Jones company. News Corp acquired OPIS
(the Oil Price Information Service) and related assets from S&P
Global and IHS Markit in February.
Base Chemicals has a strong track record of growth, with a
revenue base that is nearly 100% digital and recurring, and,
similar to OPIS, has high margins with modest Capex
requirements.
News Corp is acquiring Base Chemicals for $295 million in a cash
transaction, subject to customary adjustments, and follows the UK
Competition and Markets Authority request that IHS Markit divest
Base Chemicals and OPIS as part of the S&P Global and IHS
Markit merger. S&P Global and IHS Markit completed their merger
in February. In connection with the Base Chemicals acquisition,
News Corp expects to receive a step up in tax basis resulting in an
annual deduction over the next 15 years with an estimated tax
benefit of approximately $46 million on a present value basis.
“Base Chemicals, together with OPIS, will substantially extend
the reach and strength of Dow Jones’ news and information
capabilities in commodities, where the desire for data, analysis
and insight is burgeoning, especially in energy, renewables,
chemicals and related fields,” said Robert Thomson, Chief Executive
of News Corp. “Dow Jones will capitalize on the appetite for
trusted and accurate information for years to come, and we also see
strong cross-sell and upsell potential using the potent Wall Street
Journal, Investor’s Business Daily and MarketWatch audiences as a
premium pool for customer leads. We are also delighted that the
acquisitions of both Base Chemicals and OPIS came at a distinctly
favorable price.”
Almar Latour, Chief Executive Officer of Dow Jones and Publisher
of The Wall Street Journal said: “The business and teams we are
welcoming to our company today have built one of the most trusted
sources of information and analysis across the global chemical
value chain. This knowledge and expertise is an excellent companion
to OPIS, enabling us to expand into new customer segments as we
continue to lay the foundations for our new energy, chemicals and
sustainability vertical. Our collective skills and strengths,
especially our shared legacies of providing trusted, rigorous
information, open up a wide range of growth opportunities for Dow
Jones.”
“We are very excited to welcome the talented team at Chemical
Market Analytics to the Dow Jones family,” said Brian Crotty,
general manager for OPIS. “Uniting Chemical Market Analytics' deep
expertise and trusted reputation with Dow Jones’ global reach will
enable us to deliver deeper and richer information and analysis to
our customers. We look forward to the impact we’ll have
together.”
Base Chemicals is known for its pricing data, insights, analysis
and forecasting capabilities for the world’s most important base
chemicals delivered through its leading Market Advisory and World
Analysis services.
By becoming part of Dow Jones’ professional information
business, it is expected Base Chemicals will benefit from Dow
Jones’ expertise in news, research and events. Similarly, Base
Chemicals’ rich analysis and forecasting capabilities provide
opportunities for Dow Jones to enhance pricing, data and news
solutions.
In its most recent fiscal year, ended November 30, 2021, Base
Chemicals generated approximately $65 million in revenues. Base
Chemicals’ revenues are geographically diverse, with more than
1,700 customers across a wide range of industries, and
approximately 185 employees.
News Corp reported its FY 2022 Third Quarter results on May 5,
2022; the company had record third quarter revenues and
profitability. Also in Q3, Dow Jones reported its highest third
quarter revenue since its acquisition with 16% growth. The Dow
Jones professional information business grew 13%, reflecting robust
growth in Risk & Compliance and the inclusion of one month of
OPIS results.
Gibson, Dunn & Crutcher LLP served as legal counsel for News
Corp in the transaction.
Forward-Looking Statements
This release contains forward-looking statements based on
current expectations or beliefs, as well as assumptions about
future events, and these statements are subject to factors and
uncertainties that could cause actual results to differ materially
from those described in the forward-looking statements. The words
“expect,” “estimate,” “anticipate,” “predict,” “believe,”
“potential” and similar expressions and variations thereof are
intended to identify forward-looking statements. These statements
appear in a number of places in this release and include statements
with respect to, among other things, the potential benefits from
the acquisition of Base Chemicals and OPIS. Readers are cautioned
that any forward-looking statements are not guarantees of future
performance and involve risks and uncertainties. Many factors could
cause actual results to differ materially from those described in
these forward-looking statements. The forward-looking statements in
this release speak only as of this date and News Corp and Dow Jones
undertake no obligation (and expressly disclaim any obligation) to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise, except
as required by law.
About News Corp
News Corp (Nasdaq: NWS, NWSA; ASX: NWS, NWSLV) is a global,
diversified media and information services company focused on
creating and distributing authoritative and engaging content and
other products and services. The company comprises businesses
across a range of media, including: digital real estate services,
subscription video services in Australia, news and information
services and book publishing. Headquartered in New York, News Corp
operates primarily in the United States, Australia, and the United
Kingdom, and its content and other products and services are
distributed and consumed worldwide. More information is available
at: http://www.newscorp.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20220531006125/en/
News Corp Investor Relations Michael Florin 212-416-3363
mflorin@newscorp.com
News Corp Corporate Communications Jim Kennedy 212-416-4064
jkennedy@newscorp.com
Dow Jones Corporate Communications Jennifer Thurman 303-408-4201
jennifer.thurman@dowjones.com
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