New Mountain Capital Agrees to Sell SNL Financial to McGraw Hill Financial for $2.225 Billion
SNL’s Enterprise Value Increased by Approximately Five Times During
New Mountain’s Four-Year Majority Ownership
Growth in Value Due to Growth in Revenues, Earnings,
New Products and New Geographies
New York, NY – July 27, 2015 –New Mountain Capital, L.L.C. (“New Mountain”), a private equity firm that emphasizes business building and growth as it pursues long-term capital appreciation, today announced that it has agreed to sell SNL Financial LC (“SNL Financial”) to McGraw Hill Financial, Inc. (NYSE: MHFI) for an enterprise value of $2.225 billion. Majority control of SNL Financial had previously been acquired by New Mountain at an enterprise valuation of $450 million in August 2011. SNL Financial is one of the premier providers of breaking news, financial data and expert analysis on business sectors critical to the global economy. The transaction is expected to be completed in the third quarter of 2015, pending customary regulatory approval.
“Today’s development is the culmination of a highly successful partnership that the SNL Financial management team and I have had with New Mountain over the past four years,” said Reid Nagle, Founder of SNL Financial. “Since taking a majority stake in SNL in 2011, New Mountain has kept all of its promises and exceeded all of my expectations. The New Mountain team also has interacted with the SNL management team in a collaborative, seamless and value-added way. I could not be more proud of what New Mountain and SNL’s exceptional management team have jointly accomplished.”
“New Mountain has been a tremendous partner for us over the last four years, providing excellent guidance and supporting numerous growth initiatives that enabled us to double our revenues over that period,” said Mike Chinn, President and Chief Executive Officer of SNL Financial. “I am proud of all that we have accomplished together and the entire SNL team and I look forward to continued success with McGraw Hill Financial.”
Founded in 1987, SNL Financial today is a leading provider of breaking news, financial data and expert analysis on more than 10,000 public companies and 50,000 private companies in business sectors critical to the global economy, including banking, insurance and other financial services, real estate, energy, media and communications, and metals and mining. With the assistance of New Mountain, SNL completed 12 acquisitions, expanded its products and revenues across Europe, Asia and Latin America and entered into new customer segments and industry verticals.
Since August 2011, when New Mountain invested in the company, SNL Financial has added approximately 1,300 jobs, approximately doubled revenue and EBITDA and increased its geographic footprint from four to 10 countries. The company also has made substantial investments into new capabilities and product solutions to drive additional value for its customers and enable continued growth well into the future.
“We are extremely proud of our investment in SNL,” said Peter Masucci, Chairman of the Board of SNL Financial and Managing Director of New Mountain. “We are fortunate to have had the opportunity to partner with such a special company, its outstanding management team, and its talented and dedicated employees. We saw the potential of the company four years ago and together with SNL’s management team implemented various growth initiatives to realize the company’s global potential. We are confident that SNL is well-positioned to continue its strong growth as an integral part of McGraw Hill Financial.”
“New Mountain's goal is to build great businesses,” said Steven B. Klinsky, the Founder and Chief Executive Officer of New Mountain. “SNL’s fivefold growth in enterprise value since 2011 is a strong and positive example of this goal, and we thank Reid Nagle, Mike Chinn and everyone on the SNL team for their tremendous efforts and partnership.”
SNL Financial is receiving legal counsel from Fried, Frank, Harris, Shriver & Jacobson LLP.
About New Mountain
New Mountain Capital is a New York-based alternative investments firm that emphasizes business building and growth, rather than debt, as it pursues long-term capital appreciation. The firm currently manages private equity, public equity, and credit funds with over $15 billion in aggregate capital commitments. New Mountain seeks out what it believes to be the highest quality growth leaders in carefully selected industry sectors and then works intensively with management to build the value of these companies. For more information on New Mountain Capital, please visit www.newmountaincapital.com
About SNL Financial
SNL Financial is a leading provider of financial information on more than 10,000 public companies and 50,000 private companies in business sectors critical to the global economy: Banking, Financial Services, Insurance, Real Estate, Energy, Metals & Mining, and Media & Communications. The SNL information service integrates breaking news, comprehensive data and expert analysis into an electronic database available online and updated around the clock. More information is available at www.snl.com.