News Corp, a news and mass media conglomerate, is reportedly planning to acquire Oil Price Information Service (OPIS) for $1.15 billion from IHS Markit and S&P Global. This all-cash agreement will help the company expand its business-to-business digital information portfolio as well as continue its M&A streak.
Following the acquisition, the price-reporting agency will become a part of Dow Jones’ PIB (Professional Information Business), which includes Factiva, Dow Jones Newswires, and Dow Jones Risk & Compliance. For those unversed, IHS Markit and S&P Global recently announced plans to sell OPIS, with an aim to gain approval for their merger agreement that is expected to be closed in the Q4 of 2021.
Founded in 1977, OPIS provides standard and reference pricing and information for the biofuels, natural gas liquids, and oil industries, in addition to renewable energy and carbon pricing. The agency’s revenue is almost 100% digital, out of which, 95% is recurring. Moreover, it has adjusted EBITDA margins of over 50%. Due to the rapid improvement of the adjusted EBITDA, it is further anticipated to register nearly $129 million in revenue.
According to Robert Thomson, CEO of News Corp, OPIS will serve as the foundation of the rising energy, commodities, and renewables digital business that is expected to have a favorable impact on the company and Dow Jones.
The upcoming acquisition of OPIS by News Corp is subject to regulatory approvals and other customary closing conditions. Apparently, Rockville, Maryland-based company has offices in Singapore, Romania, France, the U.K., and Mexico, with around 400 employees.
Earlier in 2021, the mass media company revealed plans to take over the books and media segment of Mifflin Harcourt and Investor’s Business Daily for $349 million and $275 million in cash respectively, which are likely to be combined with its subsidiary, HarperCollins Publishers.