McGraw Hill Financial to Sell J.D. Power for $1.1 Billion -- Update

By Josh Beckerman 

McGraw Hill Financial Inc. has agreed to sell J.D. Power, known for its ratings on auto makers and other industries, for $1.1 billion to investment firm XIO Group.

In October, McGraw Hill said it would explore alternatives for J.D. Power. At the time, people familiar with the matter said it could attract a valuation of around $1 billion.

XIO Group, whose operations include London, Hong Kong and Shanghai offices, said the deal is its first for a U.S.-based company. In October, XIO bought Nasdaq-listed Israeli medical-laser company Lumenis Ltd. for about $510 million.

The J.D. Power deal is slated to close during the third quarter.

McGraw Hill Financial's brands include Standard & Poor's Ratings Services, S&P Global Market Intelligence, S&P Dow Jones Indices and Platts.

In October, McGraw Hill said "we have increased our focus on capital and commodity markets and believe that J.D. Power could be more valuable to a company in the market research and consumer analytics space." The company said Friday it "will now be even more focused on financial intelligence businesses with a common set of attributes."

McGraw Hill Financial is preparing to change its name to S&P Global Inc., a symbolic move that underscores the firm's shift away from its publishing roots. The company's data-focused moves have included a $2.2 billion purchase of SNL Financial LC.

In recent years, McGraw Hill has sold off divisions producing textbooks, trade publications and magazines.

--Timothy W. Martin contributed to this article.

Write to Josh Beckerman at [e-mail]

(END) Dow Jones Newswires

April 15, 2016 18:09 ET (22:09 GMT)

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