S&P Global has entered into an agreement to sell its Engineering Solutions business to KKR-managed investment funds for $975 million in cash, the financial information company announced in mid-January. KKR has been a longstanding S&P customer.
The agreement follows S&P Global's November announcement that it would divest the business. The deal will result in after-tax proceeds of about $750 million, which the company expects to use to fund share repurchases.
"Today's announcement marks the next exciting step towards executing our strategy of powering global markets," Douglas L. Peterson, President and Chief Executive Officer of S&P Global, said in a statement. "The divestiture of Engineering Solutions to KKR allows us to further focus on driving growth in our core businesses."
Engineering Solutions provides data, technology, and insights that allow over 6,000 global customers and 650,000 users to optimize workflows and end-user experiences. Its products enable engineers, builders, and architects in many industries to access the data and insights they need to deliver complex projects and new products.
"We see significant opportunities for Engineering Solutions to accelerate growth, expand its footprint, and continue to innovate as an independent company," Webster Chua, Partner at KKR, said in a statement. "Engineering Solutions is trusted by engineers and standards organizations around the world, and we look forward to deepening these relationships by making long-term investments in enhanced product coverage, improved workflow solutions, and expanded distribution capabilities."
S&P Global acquired Engineering Solutions in early 2022, following its merger with information services provider IHS Markit. The KKR-S&P Global transaction, which is subject to required regulatory approvals and other customary closing conditions, is expected to close by the end of the second quarter of 2023.