MSCI, a provider of investment decision support tools, has completed its acquisition of RiskMetrics Group.
Under the terms of the transaction, each outstanding share of RiskMetrics common stock not held by MSCI, RiskMetrics or any of their subsidiaries has been converted into the right to receive a combination of 0.1802 of a share of MSCI’s class A common stock and USD16.35 in cash, without interest.
“Today, we take another significant step forward in our ambition to become the leading provider of mission-critical investment decision support tools to investors globally,” says Henry Fernandez, chairman and chief executive of MSCI. “The addition of RiskMetrics greatly expands our capabilities in the high growth, high margin business of multi-asset class risk management analytics. Recent events continue to demonstrate the importance of managing risk in today’s financial markets and our clients will benefit from our company’s expanded product range and enhanced risk management offerings.”
In conjunction with the acquisition of, MSCI has also raised USD1.375bn of debt financing, including a USD1.275bn term loan and a USD100m undrawn revolving credit facility. The additional capital was used to fund the acquisition of RiskMetrics as well as to repay all prior outstanding terms loans of both MSCI and RiskMetrics.
MSCI has appointed Mellon Shareowner Services as exchange agent in connection with the merger.
