Global investment firm Francisco Partners plans to acquire The Weather Company assets from IBM.
The definitive agreement signed by the two companies, the specific terms of which were not disclosed, will result in The Weather Company becoming an independent entity, poised for new growth opportunities, the companies said in a Tuesday (Aug. 22) press release.
The assets being acquired by Francisco Partners include The Weather Company's digital consumer-facing offerings, such as the mobile app for The Weather Channel, and cloud-based digital properties like Weather.com, Weather Underground and Storm Radar, according to the press release.
Additionally, Francisco Partners will gain access to The Weather Company's enterprise offerings, which cater to industries such as broadcast, media, aviation, advertising technology, and emerging sectors, the release said. The acquisition also encompasses The Weather Company's cutting-edge forecasting science and technology platform.
The Weather Company provides weather data to more than 415 million people monthly through its digital properties while also catering to more than 2,000 businesses across various sectors, per the release.
IBM will retain its sustainability software business, including the Environmental Intelligence Suite (EIS), which helps clients manage and operationalize ESG (Environmental, Social, and Governance) data, according to the press release. IBM intends to continue leveraging The Weather Company's weather data for EIS, which has applications in areas such as land use monitoring, natural disaster tracking, and crop yield prediction.
With the increased investment and resources from Francisco Partners, The Weather Company plans to expand its offerings beyond forecasting, the release said. The company aims to provide users with new tools and experiences that help them understand how weather impacts various aspects of their lives, starting with health and well-being. For businesses, The Weather Company intends to offer more actionable insights.
The transaction is expected to close by the end of the first quarter of 2024, subject to regulatory approvals, completion of local labor processes, and other customary closing conditions, per the release.
Among the latest offerings launched by The Weather Channel is a subscription bundle that lets users check the weather, follow the news or get deals on hotel rooms from one platform. The company launched this bundle in partnership with USA Today and Tripadvisor.
The post Francisco Partners Plans to Acquire and Expand The Weather Company first appeared on PYMNTS.com.
