Verisk Analytics, Inc., a source of information about risk, has announced that it has signed an agreement to acquire EagleView Technology Corp., the parent company of Pictometry International Corp., and Eagle View Technologies, Inc.
EVT is an acknowledged leader in the U.S. of geo-referenced aerial image capture and visual-centric data analytics and solutions to government, insurers, contractors and commercial customers. The acquisition will accelerate Verisk’s position as a key provider of data, analytics and decision support solutions based on aerial imagery.
Based in Rochester, NY, and Bothell, WA, EVT was formed in January 2013 as a result of a combination of Pictometry International Corp., and Eagle View Technologies, Inc. The combined company maintains one of the most comprehensive image libraries, covering more than 85 percent of the U.S. population, more than one million square miles, and approximately 90 percent of total U.S. structures.
EVT leverages this image library to provide proprietary solutions to property and casualty insurance, government, and a variety of other commercial markets. EVT has developed unique technology for image capture and processing, enabling understanding of physical property characteristics that can be used for valuation and risk management. With more than 24 petabytes of imagery-related data, EVT has established itself at the forefront of the market.
“The acquisition of EVT advances our position in the imagery analytics market, adding new municipal and commercial customers,” said Scott Stephenson, president and CEO of Verisk Analytics, in a press release issued on January 14. “The transaction supports the aerial imagery solution development that has been under way at our Xactware unit. We believe we can build on the comprehensive coverage of EVT’s library to expand solutions to our customers, including underwriting and, over time, international solutions as well. We look forward to combining the strong business built by the EVT team with Verisk’s analytical capabilities and unparalleled customer relationships in the property/casualty insurance market.”
Jim Loveland, president and chief executive officer of Verisk’s Xactware business, added, “We’re excited to welcome our new colleagues to the Verisk family and look forward to integrating their substantial knowledge and experience in imagery with our own. This acquisition will allow us to enhance our existing claims and underwriting software tools and expand the solutions we can offer to our existing property/casualty customers. We also intend to enhance solutions that EVT is currently providing to the municipal, government and other commercial markets.”
“This combination is a natural culmination of the businesses we’ve built over the years and a win for our customers and employees,” said Chris Barrow, CEO of EVT. “Our teams stand ready to build on the strength of our existing solutions with the benefit of Verisk’s analytic expertise, customer relationships and financial resources.”
The purchase price is $650 million to be paid in cash to stockholders of EVT. Verisk expects to receive approximately $25 million in tax benefits as part of the transaction. In addition, Verisk will reduce the cash payment by approximately $13 million to reflect an existing minority equity ownership in EVT. The transaction is expected to close by July 15, 2014, subject to the completion of customary closing conditions, including receipt of regulatory and shareholder approvals. Verisk expects to use cash on hand and available capacity under its revolving credit facility to fund the purchase. The transaction is expected to be neutral to adjusted EPS in 2014.