- S&P Global (SPGI) is selling its Engineering Solutions business operations to KKR for $975 million. These are the details.
S&P Global (SPGI) announced that it has entered into an agreement to sell its Engineering Solutions business to investment funds managed by KKR, which is a leading global investment firm and a longstanding customer of S&P Global, for $975 million in cash, subject to customary purchase price adjustments.
S&P Global anticipates the divestiture to result in after-tax proceeds of approximately $750 million, which proceeds are expected to be used to fund share repurchases. And the agreement follows S&P Global’s announced intent in November 2022 to divest the business.
Engineering Solutions provides data, technology, and insights that enable over 6,000 global customers and 650,000 users to optimize workflows and end-user experiences. And 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.
The Engineering Solutions became part of S&P Global following the company’s merger with IHS Markit early last year. And the deal, which is subject to receipt of required regulatory approvals and satisfying other customary closing conditions, is expected to close by the end of the second quarter of 2023.
KKR is making the investment through its North America Fund XIII.
“Today’s announcement marks the next exciting step towards executing our strategy of powering global markets. The divestiture of Engineering Solutions to KKR allows us to further focus on driving growth in our core businesses. Engineering Solutions is a strong business, and we believe it will continue to thrive under KKR’s direction.”
- Douglas Peterson, President and Chief Executive Officer of S&P Global
“We see significant opportunities for Engineering Solutions to accelerate growth, expand its footprint and continue to innovate as an independent company. 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.”
- Webster Chua, Partner at KKR