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McGraw Hill to buy SNL Financial for about $2.225 billion in cash

The McGraw-Hill Companies
Adam Jeffery | CNBC

McGraw Hill Financial, the parent of the Standard & Poor's ratings agency, said it would buy SNL Financial, a financial data and information company owned by private equity firm New Mountain Capital, for about $2.23 billion.

The financial impact of the acquisition will be mitigated by tax benefits of about $550 million, the New York-based company said in a statement.

The cash deal is expected to add to adjusted diluted earnings per share in 2016, excluding amortization, McGraw Hill said.

McGraw Hill, which also reported second-quarter results on Monday, said adjusted net income from continuing operations rose 17 percent to $335 million.

McGraw Hill provides ratings, analytics, data and research to financial institutions and individuals and is the parent of the Standard & Poor's ratings agency.

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In August 2011, New Mountain Capital purchased a majority stake in SNL in a transaction which valued the entire company at $450 million.

SNL was founded in Hoboken, New Jersey by Reid Nagle in 1987. Nagle remains on the company's board.

Bloomberg first reported news of the deal on Sunday.

Thomson Reuters competes with McGraw Hill in providing information related to financial and commodities markets.