Verisk Analytics has scrapped its planned $650 million acquisition of Bothell, Wash.-based EagleView Technology Corp., after the Federal Trade Commission threatened to sue in order to block the deal. Deborah Feinstein, the Director of the FTC’s Bureau of Competition, said in a press release that it’s good news for the state of competition in the aerial rooftop measurement market. (Yep, it exists.)
“The parties’ decision to abandon this transaction preserves competition in the U.S. market for rooftop aerial measurement products used by the insurance industry to assess property claims,” she said. “A combination of the only two significant competitors in this market would have likely led to higher prices for both insurance companies and consumers.”
The deal was first announced in January of this year, and would have brought together the two largest companies that use aerial photography and proprietary software to measure the cost of repairing a roof. Despite every effort by Verisk, the company couldn’t come to an agreement with the FTC.
“Verisk worked hard to come to a mutually agreeable solution with the FTC, but no agreement could be reached that was in the best interests of our shareholders,” Verisk President and CEO Scott Stephenson said in a press release.
Stephenson went on to say that the company would continue investing in its aerial photography business, and is looking into more acquisitions in the future.
A representative for EagleView did not immediately respond to a request for comment.