McGraw Hill to buy SNL Financial for $2.23 billion

The deal will strengthen McGraw Hill's data unit, S&P Capital IQ, particularly in providing information on banking and insurance, the company said on Monday.

SNL Financial, owned by private equity firm New Mountain Capital LLC, has about 3,000 employees in 10 countries.

McGraw Hill, which also reported second-quarter results on Monday, said the deal was expected to add to adjusted diluted earnings per share in 2016, excluding amortization.

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.

McGraw Hill's adjusted diluted earnings per share from continuing operations jumped 17 percent to $1.21, helped by gains from legal settlements and the sale of a legacy construction business asset.

The company maintained its full-year forecast for adjusted earnings per share of between $4.35 and $4.45, despite expectations of a 5-7 cent dilution from the deal.

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

McGraw Hill's shares closed at $105.58 on the New York Stock Exchange on Friday.

(Reporting by Richa Naidu in Bengaluru; Editing by Saumyadeb Chakrabarty)