On Monday, McGraw Hill Financial announced it had signed a definitive agreement to buy Charlottesville-based SNL Financial for $2.225 billion in cash from privately held New Mountain Capital.
Jason Feuchtwanger from McGraw Hill says his company is committed to Charlottesville as a strategic location and no layoffs are planned for current SNL employees.
SNL, which provides financial news and analysis to subscribers, has 3,000 employees in 10 different countries, while McGraw Hill has a massive 17,000 employees in 30 countries. McGraw Hill’s iconic brands include Standard & Poor’s rating services.
The transaction is expected to close in the third quarter of 2015.
“We are enthusiastic about SNL because it is a fast-growing, highly complementary subscription-based business that will enable us to accelerate our strategy to be the leading provider of transparent and independent benchmarks, analytics, data and research across the global capital, commodity and corporate markets,” said Douglas L. Peterson, president and CEO of McGraw Hill Financial in a written release.
Mike Chinn, president and CEO of SNL Financial, will report to Peterson once the deal closes.
“This is an exciting day for our clients, employees and shareholders and a true milestone event in our 28-year history,” says Chinn,
Many are asking just how rich does this make Reid Nagle, who founded SNL in 1987 and who was the second largest shareholder when New Mountain Capital bought a majority stake in 2011?
“No comment as far as that goes,” says SNL spokesperson Christina Twomey in an e-mail.
Updated on July 28.