THE US giant that is buying Wood Mackenzie has highlighted its enthusiasm for the oil and gas consultancy's Edinburgh based operation and management and emphasised the deal is not being driven by cost cutting considerations.

Verisk Analytics announced it had agreed to buy Wood Mackenzie for £1.85 billion cash, in a deal that will result in employee shareholders in the firm getting payouts worth an average £500,000 each.

Wood Mackenzie's chief executive Stephen Halliday and boardroom colleagues Brian Aird and Paul Gregory look to be in line to collect millions each. All have significant holdings in the firm.

Wood Mackenzie had been reported to be looking at a stock market flotation valuing it at £2bn but was also thought to have had approaches from potential trade buyers including Verisk.

New Jersey-based Verisk told analysts Wood Mackenzie would play a key role in the company's push for growth in international markets. The information and risk analysis specialist gave a glowing assessment of Wood Mackenzie and the company's management team.

"We are thrilled about adding Wood Mackenzie to the Verisk family," chief executive Scott Stephenson told analysts.

"The company has a great culture and an outstanding leadership team."

He added: "The Wood Mackenzie team will remain intact and continue to lead as part of the Verisk family."

Wood Mackenzie employs 500 people in Scotland out of a global total of 1,000.

Noting that Verisk has been eyeing Wood Mackenzie since 2011, Mr Stephenson said the company had developed a market leading position in the lucrative market to provide information on the global oil and gas market.

This will allow Verisk to expand beyond its core markets of health care and financial services.

With a blue chip client base which includes oil and gas giants, banks and governments, Wood Mackenzie has generated strong growth in profits.

Mr Stephenson noted that Wood Mack as it is known has remained very profitable during periods of low oil prices.

But while Mr Stephenson emphasized the profitability of Wood Mack he said a key attraction of the deal was the prospect of accessing the kind of product development expertise the company has developed.

Describing Wood Mack as a hot house of ideas, he said the company has become adept at developing ideas for new products based on deep relationship with customers.

These are skills that could help Verisk make more money in its existing markets.

Asked by an analyst about the scope for squeezing cost savings out of the enlarged business, Mr Stephenson said: "I would not place a great deal of emphasis on cost synergies. This is really about expansion, it's about investment, it's about leveraging capabilities and expertise."

While the company did not make an explicit commitment to retain Wood Mackenzie's Edinburgh headquarters, Mr Davidson's comments indicate it will be unlikely to want to disturb arrangements that have been working well.

He said an important part of Wood Mackenzie's appeal is that it has offices and customers in many areas of the world.

Finance chief Marjk Anquillare highlighted the attractions of the fact Wood Mackenzie is registered in the UK for tax purposes.

"Given Wood Mack's 23 per cent effective tax rate this business generates nearly 30 per cent more free cash flow than it of was domiciled in the US," he said.

Mr Halliday welcomed the deal, which underlines the regard Wood Mackenzie is held in in international circles.

"This combination is a natural home for the business we've built over the years and a great opportunity for our customers and employees," he said.

Verisk has bought the firm less than three years after US private equity house Hellman & Friedman acquired a controlling interest in a deal that valued the business at £1.1bn.

Employees retained a 24 per cent holding after that deal.

With its roots in a Victorian stockbroking business, Wood Mackenzie was bought by management from Germany's Deutsche Bank for £26m in 2001.