S&P Global to Unload Its Engineering Solutions Business to KKR for $975M

S&P Global will sell its engineering solutions business to investment funds managed by private equity giant KKR & Co. for $975 million in cash.

KKR is making the investment through its North America Fund XIII.

The New York financial data giant anticipates the divestiture to result in proceeds of approximately $750 million after tax, which are expected to be used to fund share repurchases.

The decision comes after S&P Global announced it would sell the business unit in November, which serves more than 6,000 customers in the aerospace, defense, energy and architecture industries, among others.

“The divestiture of Engineering Solutions to KKR allows us to further focus on driving growth in our core businesses,” S&P Global Chief Executive Officer Douglas Peterson said.

S&P Global acquired the engineering solutions unit through its 2022 merger with IHS Markit.

“We see significant opportunities for Engineering Solutions to accelerate growth, expand its footprint and continue to innovate as an independent company,” added Webster Chua, Partner at KKR.