NEW YORK (AP) _ McGraw Hill Financial, owner of ratings agency Standard & Poor’s, is buying SNL Financial for about $2.23 billion.

Privately held SNL Financial, based in Charlottesville, Virginia, is a provider of financial news, data and analysis.

McGraw Hill Financial President and CEO Douglas Peterson said in a written statement that the transaction will help in developing new services and will allow the company to expand into adjacent markets.

The acquisition’s cost will be somewhat offset by tax benefits of about $550 million.

McGraw Hill Financial Inc., based in New York, said Monday that it expects approximately $70 million in savings to be realized by 2019. The acquisition is anticipated to add to adjusted earnings per share next year, excluding amortization.

The deal is targeted to close in the third quarter.

Separately, McGraw Hill posted second-quarter adjusted earnings from continuing operations of $1.21 per share on revenue of $1.34 billion. Analysts surveyed by Zacks Investment Research predicted earnings of $1.11 per share on revenue of $1.36 billion.

Shares slumped 6 percent, or $6.47, to $99.11 in early trading.