NEW YORK (March 7, 2005) — McGraw-Hill Cos., the publisher of Business Week magazine, has agreed to buy consumer research and consulting firm J.D. Power and Associates in a move aimed at enhancing its business information platforms.
Terms of the deal, expected to close in April, were not disclosed. The transaction is contingent on a review by the federal government under the Hart-Scott-Rodino Antitrust Improvements Act.
“The addition of J.D. Power…will significantly strengthen our core business information platform by providing a new direct link to consumers, while also providing new collaborative opportunities with our leading franchises including BusinessWeek, Platts, (which provides global commodity news and information), McGraw-Hill Construction, Aviation Week and our healthcare group,” said Scott Marden, president of McGraw-Hill's Information and Media Services.
“I am personally delighted to have found a partner that shares our heritage of integrity and independence, and our unyielding commitment to providing objective research and analysis,” said J.D. Power III, who will continue to be involved with the company.
McGraw-Hill gathers and sells information in the financial and education segments. Its properties include Standard & Poor's, McGraw-Hill Education, McGraw-Hill Construction and Aviation Week.
Last October, J.D. Power and Associates hired private capital firm Evercore Partners of New York to determine how to raise money. Until then, the firm had financed its growth from cash flow.
The firm needed more cash to fund plans to expand its services globally. At that time, a spokesman said the options could include selling stock, or even selling the company.
Westlake Village, Calif.-based J.D. Power and Associates is best known for its surveys of auto owners that result in its annual Initial Quality Study and Vehicle Dependability Study. It also operates the Power Information Network, which collects detailed sales data from auto dealers and sells it.
The firm also consults and surveys consumers in more than a dozen industry segments, including health care, travel, real estate, telecommunications, insurance and copiers.