MSCI To Acquire RiskMetrics Group

MSCI Inc, the index and investment support provider, has agreed to buy RiskMetrics, a provider of risk management and corporate governance services, for $1.55 billion
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MSCI Inc, the index and investment support provider, has agreed to buy RiskMetrics, a provider of risk management and corporate governance services, for $1.55 billion.

The combined company will have $750 million of revenues and approximately 2,000 employees across 20 countries.

This deal marks a significant milestone in our effort to become the leading provider of investment decision support tools, said Henry Fernandez, Chairman and CEO, MSCI Inc. The combined scale, complementary product capabilities and clients and extensive geographic footprint of MSCI and RiskMetrics will drive significant cost-saving synergies and revenue opportunities. RiskMetrics is the perfect match for MSCI and we are very excited to welcome them to the MSCI family.

One of the key trends that has been driving the growth of our analytics business is the increased need to understand, measure, manage, and report risk. The combination of MSCIs expertise in portfolio equity risk models and analytics, and RiskMetrics powerful multi-asset class risk management platform creates a comprehensive, best of breed portfolio risk management offering, which will provide our clients with a seamless view of risk across the front and middle office, added Fernandez.

RiskMetric has its origins in a 1989 decision made by Sir Dennis Weatherstone, then chairman of J.P. Morgan, when he asked for a reporting system for the risks of the firm. In 1992, the bank launched RiskMetrics. In 1998 the program was spun out of J.P. Morgan, and ten years later listed on the New York Stock Exchange.

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