MSCI Inc. (NYSE: MXB), a provider of investment decision support tools signed a definitive agreement to acquire RiskMetrics Group, Inc. (NYSE: RISK), a provider of risk management and corporate governance products and services to the financial community.
MSCI will acquire RiskMetrics in a cash and stock transaction valued at $21.75 per share based on MSCI’s closing price of $29.98 per share on Friday, February 26, 2010, or approximately $1.55 billion.
The acquisition continues a trend of consolidation in Environmental, Social, Governance (ESG) media. Other recent acquisitions include ASSET4 by Thomson Reuters (NYSE: TRI); New Energy Finance by Bloomberg; and Emergy Energy Research by IHS (NYSE: IHS.
MSCI and RiskMetrics said combined they will have approximately $750 million in revenues and approximately 2,000 employees across 20 countries.
MSCI’s offer consists of $16.35 in cash and 0.1802 shares of MSCI per share of RiskMetrics. The transaction is subject to customary closing conditions. The transaction is expected to close in MSCI’s 3Q10.
The transaction is expected to be financed by existing cash and proceeds of debt. MSCI has received a commitment letter from Morgan Stanley Senior Funding, Inc. for senior secured credit facilities aggregating up to $1.375 billion, which would be available, subject to customary conditions, to fund the cash consideration in the acquisition, the refinancing of existing senior secured credit facilities of MSCI and RiskMetrics and the ongoing working capital needs of MSCI and its subsidiaries following the transaction.
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