Dec. 29 at 6:38 PM
Verisk Analytics said it has terminated its
$2.35 billion agreement to acquire AccuLynx after the U.S. Federal Trade Commission did not complete its regulatory review by the December 26 deadline. As a result, Verisk will redeem
$1.5 billion of senior notes issued to finance the deal at 101% of principal plus accrued interest. AccuLynx has disputed the termination, but Verisk said it strongly disagrees and will vigorously defend its position.
The company noted the termination could strengthen its financial position, with leverage expected to be about 1.9x LTM adjusted EBITDA after the note redemption, and highlighted
$1.2 billion remaining under its share repurchase authorization. Management reaffirmed its commitment to disciplined capital allocation and long-term growth. Wolfe Research maintained an Outperform rating and a
$245 price target, while Raymond James estimated Verisk could incur
$15 million or more in additional interest costs.
$VRSK