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Verisk Expands Foothold in Energy Market with MAKE Buyout

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Leading data analytics provider Verisk Analytics, Inc. (VRSK - Free Report) recently acquired MAKE, a leading research and advisory business specializing in wind power.

MAKE has a blue-chip customer base worldwide including some of the world's largest renewable energy companies. The customers of these energy companies include suppliers, OEMs, utilities, independent power producers, and financial institutions. They are served from MAKE's locations in Denmark, China, and the U.S.

Per the deal, MAKE will become part of Verisk’s operating unit, Wood Mackenzie. This acquisition will enhance the company’s offerings to its existing clients and help it become the leading market analysis and advisory firm.

MAKE is bringing in a significant transformation in the energy sector. The company’s cutting-edge knowledge of wind supply chains, costs and investment trends will help augment Wood Mackenzie's offerings in the market.

In Jul 2016, Wood Mackenzie acquired Greentech Media. The company is continuing to expand its foothold in data and insight for the power and renewables sector. Decarbonization is currently in demand in the energy industry. Wood Mackenzie is strategically acquiring such companies to offer its clients the most advanced solutions in the renewables sector. The addition of MAKE to Wood Mackenzie would help complement the company’s own existing practice.

The renewables sector continues to grow at an impressive pace and at a scale that influences the entire energy landscape. In 2016, over $200 billion was invested to build a 116 gigawatts solar and wind capacity. This accounted for 41% of all new electricity capacity worldwide.

Verisk has grossly underperformed the Business - Information Services industry in the last three months with an average loss of 4.9% against a gain of 1% for the latter.

Verisk currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the industry include Hitachi, Ltd. (HTHIY - Free Report) , Publicis Groupe S.A. (PUBGY - Free Report) and InnerWorkings, Inc. . Publicis Groupe and InnerWorkings carry a Zacks Rank #2 (Buy) while Hitachi sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Hitachi is currently trading at a forward P/E of 11x.  It has a long-term earnings growth expectation of 13%.

Publicis Groupe has a long-term earnings growth expectation of 9.51%. It is currently trading at a forward P/E of 14.4x.

InnerWorkings has a long-term earnings growth expectation of 21.7%. It is currently trading at a forward P/E of 22.5x.

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