Verisk, a data analytics provider for the insurance and energy industry, is selling its energy business to Veritas Capital for a cash consideration of up to $3.1bn to expand insurance operations.

Under the deal, which includes future additional contingent consideration of up to $200m, Veritas’ affiliate will be buying Wood Mackenzie.

Wood Mackenzie, which joined Verisk in 2015, is engaged in providing data, analytics, and insights to power the energy, renewables, and natural resources industry.

The divesture is part of Verisk’s efforts to optimise its business to achieve peak performance and long-term sustainable growth and value.

Verisk CEO Lee Shavel said: “This transaction best positions Verisk to expand our role as a strategic data, analytics, and technology partner to the global insurance industry, and as a result, drive growth and returns that will create long-term shareholder value.

“It will also further advance Wood Mackenzie’s competitive position and support the vital roles both organisations play in their respective industries.”

Veritas CEO and managing partner Ramzi Musallam said: “In partnership with Wood Mackenzie leadership, and with the strong backing of our strategic investment, we have an opportunity to enhance and expand the datasets and solutions the company provides to its growing customer base, from upstream producers who are looking to decarbonise to new energy asset managers who want to optimise their investments.”

The deal is expected to close in the first quarter of next year, subject to customary closing conditions and receipt of regulatory approval.

Earlier this year, Verisk sold its financial services business to TransUnion and divested its environmental health and safety businesses.