IHS Announces Intent to Acquire Oil Price Information Service (OPIS), a Premier Provider of Petroleum Pricing, News and Analytics
IHS Inc. (NYSE: IHS), the leading global source of critical information
and insight, has signed a definitive agreement to acquire Oil Price
Information Service (OPIS), an internationally referenced pricing
reporting agency that serves the oil, natural gas and biofuels
industries, for $650 million.
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The acquisition is subject to regulatory approval, including expiration
or termination of the applicable waiting period under the
Hart-Scott-Rodino Antitrust Improvements Act of 1976. More details will
be provided on the IHS fourth quarter and year-end 2015 earnings call on
January 12, 2016.
OPIS is the most complete source for U.S. refined petroleum pricing
data, news and analytics. OPIS information primarily serves the
downstream energy market and helps to further diversify the IHS Energy
“The acquisition of OPIS represents a new area of business for IHS and
gives IHS visibility across the entire petroleum value chain, from
wellhead to consumer,” said Jerre Stead, IHS chairman and chief
executive officer. “OPIS has continued to grow through the challenges in
the energy markets due to the ‘must-have’ nature of its information and
analysis for commercial contracts and to settle trades. Specifically,
OPIS is the leader in the rack and retail downstream refined products
pricing and it also has a strong position in the spot market. We expect
to continue to see strong growth in these areas as well as future growth
contributions from International downstream spot-market pricing.
“OPIS, along with our recently announced acquisition of CARPROOF, both
provide IHS with high EBITDA margin and strong organic growth,” Stead
OPIS began covering petroleum news in 1977 with the launch of the
award-winning Oil Express Newsletter. OPIS later pioneered "rack"
price discovery for thousands of wholesalers, and now maintains the
world's most comprehensive database of U.S. wholesale petroleum prices,
publishing more than 30,000 rack prices each day at over 1,500 terminals
in nearly 400 market locations. Refinery feedstocks and liquefied
petroleum gas prices from OPIS also are considered a preferred benchmark
by many U.S. and international traders. All OPIS spot and rack prices
are available historically to customers via its web-based TimeSeries
database. Also, OPIS is the largest aggregator of retail petroleum
pricing, covering more than 300,000 retail locations in over 30 countries
“By combining the capabilities of OPIS and IHS, we become the most
complete source of U.S.-refined pricing information and analytics,”
Stead said. “From this new platform, IHS will bring additional value to
our customers by layering new insight on top of our current product
offerings. We also will add commodity coverage areas and expand further
outside of OPIS’s core U.S. market.”
OPIS customers across the oil supply chain can look forward to seeing
further improvements in real-time news and pricing service, and
market-specific benchmark pricing reports thanks to the OPIS acquisition
by IHS, said Brian Crotty, OPIS chief executive officer.
“Joining forces with IHS strengthens our growth trajectory and also
enhances our ability to deliver world-class OPIS pricing and news
information, enabling our customers to make smarter, more informed
decisions,” Crotty said.
employs 281 people and is headquartered in Gaithersburg, Maryland. It is
owned by UCG, a privately held portfolio of business information,
software and technology companies.
About IHS (www.ihs.com)
IHS (NYSE: IHS) is the leading source of insight, analytics and
expertise in critical areas that shape today’s business landscape.
Businesses and governments in more than 140 countries around the globe
rely on the comprehensive content, expert independent analysis and
flexible delivery methods of IHS to make high-impact decisions and
develop strategies with speed and confidence. IHS has been in business
since 1959 and became a publicly traded company on the New York Stock
Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is
committed to sustainable, profitable growth and employs approximately
8,600 people in 32 countries around the world.
IHS is a registered trademark of IHS Inc. All other company and
product names may be trademarks of their respective owners. © 2016 IHS
Inc. All rights reserved.
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