Analytics services provider, Verisk Analytics, Inc. (VRSK - Free Report) recently announced the acquisition of The GeoInformation Group, a premier provider of geographic data solutions, for an undisclosed amount. The acquisition of this Cambridge, UK-based company will enable Verisk to extend its regional presence as well as boost its leading position in the market.
Since its inception in 1998, GeoInformation has evolved as an acclaimed provider of detailed geospatial information for land and property-related issues across the UK. The company leverages on high-resolution aerial imagery to obtain accurate and in-depth geospatial data for key public sector entities, including Transport for London, Metropolitan Police, Thames Water, and major insurers and telecom organizations. Land developers, architects, planners, and geospatial professionals have also benefited from its detailed property and mapping solutions.
This strategic transaction will fortify Verisk’s footprint in the UK and cement its position as a premier data and analytics services provider across multiple markets, including insurance, energy, and real estate. At the same time, GeoInformation's complementary product portfolio will supplement Verisk’s risk management and predictive analytics capabilities across the globe.
Using advanced technologies to collect and analyze troves of data, Verisk draws on unique data assets and deep domain expertise to provide predictive analytics and decision support solutions that are integrated into customer workflows. These empower its customers to take informed decisions with greater precision, efficiency and discipline about various risks involved in the businesses. In order to create long-term value for its clients, the company has extended its scalable data and analytic solutions by steadily putting resources into overseas markets. The scalability of its products has further led to highly cash-generative businesses, characterized by high net margins and relatively low capital intensity.
Verisk aims to create long-term value through organic growth and better return on invested capital. The company continuously seeks to expand its portfolio by leveraging on its deep knowledge and embedded position to develop new, proprietary data sets and predictive analytics, by working in unison with its customers to understand their evolving needs. Verisk has recorded average organic revenue growth of about 8% over the past ten years. At the same time, the company continues to extend its footprint in new markets, with healthy long-term growth potential, through targeted international expansion. This holistic growth model augurs well to strengthen its leading position in the market.
We are encouraged with this Zacks Rank #3 (Hold) stock’s latest acquisition. Some better-ranked stocks in the industry include LifeLock, Inc. , TransUnion (TRU - Free Report) and Exponent Inc. (EXPO - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
LifeLock is currently trading at a forward P/E of 43.0x and has beaten estimates thrice over the trailing four quarters, for an average earnings surprise of 27.4%.
TransUnion has a long-term earnings growth expectation of 12.8% and is currently trading at a forward P/E of 22.6x.
Exponent has a long-term earnings growth expectation of 12.0% and is currently trading at a forward P/E of 40.2x.
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