Exclusive-S&P Global weighs options for mobility unit, sources say

By Amy-Jo Crowley and Milana Vinn

LONDON/NEW YORK (Reuters) -Financial information company S&P Global is weighing options for its mobility business, including a full sale, three people with knowledge of the matter told Reuters.

The New York-listed group, known for its rating agency business and stock market indexes, has spoken with advisers over plans for the business, which provides vehicle, market and consumer data for original equipment manufacturers, the people said.

Private equity firms in recent months have expressed interest in the unit, which is not viewed as a core part of S&P’s strategy, the people said. The unit could be valued at more than $12 billion, two of the people said.

The sources, speaking on condition of anonymity because the talks are private, said that no decision had been made and a sale may not proceed.

A spokesperson for S&P Global said: "We do not comment on market speculation."

S&P in February said it was reviewing its portfolio of assets to focus on core areas of growth.

The company said it would explore strategic options for marketing services firm Fincentric after agreeing to buy research platform Visible Alpha for an undisclosed sum.

Revenue from S&P’s mobility segment grew 8% to $386 million in the most recent quarter from a year earlier, and totalled $1.4 billion in 2023.

The unit made adjusted operating profit of $576 million in 2023, up 9% from the year before.

S&P's deliberations stem from its belief that its market value does not fully reflect the sum of its parts and the fact that the unit has a very different customer base from the rest of the group, two of the people said.

A move to sell the mobility unit would come as Thoma Bravo is seeking to sell its automotive data firm J.D. Power for $8 billion including debt.

(Reporting by Amy-Jo Crowley in London and Milana Vinn in New York. Editing by Anousha Sakoui and Mark Potter)