Dec 29 (Reuters) - Data analytics firm Verisk said on Monday it had pulled the plug on its planned $2.35 billion acquisition of roofing software maker AccuLynx, pinning the termination on a regulatory review delay.
Verisk said the decision follows a notification from the U.S. Federal Trade Commission that the agencyhad not completed its review of the transaction by the termination date of December 26.
AccuLynx has notified Verisk that it believes the deal termination is "invalid". Verisk said it "strongly disagrees" with the assertion and plans to "vigorously defend" its position.
Shares of New Jersey-based Verisk were up 1.7% in afternoon trading.
The deal termination could drive incrementally higher share repurchase activity from Verisk in 2026, Raymond James analysts said.
Verisk had unveiled its plan to acquire AccuLynx in July, a deal that was initially expected to close by the third quarter of 2025.
The FTC had in October sought more details from Verisk and AccuLynx about the proposed transaction, signifying an extended regulatory review and delaying the closing of the deal.
At the time, Verisk executives had said the firm was making progress towards the approval of the deal.
Verisk, which had extended the termination date to December 26, called off the deal last week as the transaction was not completed by the deadline.
An unfinished review after the termination deadline effectively forces the involved companies to choose between fighting a potentially years-long legal battle and walking away.
AccuLynx and the FTC did not immediately respond to Reuters' request for comment.
Founded in 2008, AccuLynx provides software that helps roofing contractors to streamline their processes and manage their business more efficiently.
With the deal terminated, Verisk plans to redeem the $1.5 billion of debt that was issued in connection with the planned acquisition.
(Reporting by Arasu Kannagi Basil and Ateev Bhandari in Bengaluru; Editing by Shreya Biswas)
