McGraw Hill Financial to Sell J.D. Power for $1.1 Billion -- 2nd 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'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 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.

McGraw Hill said Oct. 30 that J.D. Power, based in Costa Mesa, Calif., is projected to have 2016 revenue approaching $350 million. McGraw Hill's revenue last year was $5.31 billion.

--Timothy W. Martin contributed to this article.

Write to Josh Beckerman at [e-mail]

(END) Dow Jones Newswires

April 15, 2016 19:01 ET (23:01 GMT)

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