Big acquisition news shook up Charlottesville this week with the announcement that SNL Financial will be acquired by McGraw Hill Financial, bringing together each company’s strengths in the domestic and international financial information markets.
On the surface, an acquisition of this magnitude (valued at around $2.2 billion) seems like an immediate win. After all, SNL has achieved what many companies seek - a very lucrative buy-out package.
But what does the agreement mean for Charlottesville’s economy and workforce stability? McGraw Hill has publicly stated that layoffs are not anticipated and that the Charlottesville office, with its 400 employees, will remain a strategic hub. Only time will tell if the parent company will continue with this thinking once operational redundancies and market potential are more fully realized.
My guess, however, is that this is truly positive news for our community. The two companies, working now as one, have the potential to achieve much greater market penetration and increased earnings to create a positive ripple effect of economic impact. And even if revenue projections fall short or redundancies lead to cuts and some lay-offs occur in our region, we’re talking about specialized IT and financial professionals who would be sought-after by many companies in Charlottesville’s thriving IT sector.
Perhaps, most importantly, this acquisition signals the pot of gold at the end of the entrepreneurial rainbow. For high-tech entrepreneurs who focus on building great value around core technologies, this merger shows that there are very real opportunities to create wealth and economic prosperity.
For more information about the buy-out, read the Daily Progress story.