Verisk Analytics Inc. scrapped a planned $650 million takeover of EagleView Technology Corp. after antitrust regulators said the deal would give the company too large a share in the market for aerial images used by insurers.
The data provider instead plans to repurchase an additional $500 million of shares, the Jersey City, New Jersey-based company said today in a statement.
Verisk announced in January that it had agreed to buy EagleView to add an image library that encompasses about 90 percent of U.S. structures, bolstering its underwriting software and offerings to insurers and government customers. The company said in September that the deal was delayed amid a review by antitrust staff at the Federal Trade Commission.
“EagleView is the dominant company and Verisk is the only meaningful competitor,” in the industry, Deborah Feinstein, director of the FTC’s Bureau of Competition, said in a separate statement announcing that it challenged the deal. “Verisk’s entry into the market has provided a lower-priced alternative to customers. If this transaction goes through, insurance carriers, and ultimately consumers, face the risk of higher prices.”
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