FactSet Research Systems is to sell its market research business focused on advisor-sold investments and insurance, consisting of Market Metrics and Matrix Solutions, to Asset International, a portfolio company of Genstar Capital.
The total purchase price is approximately USD165 million, subject to certain working capital adjustments, with an additional earn-out of USD10 million based on the achievement of certain growth targets over the next two years.
“This transaction is consistent with our long-term strategic direction and our commitment to delivering value to our shareholders,” says Phil Snow, Chief Executive Officer of FactSet. “We appreciate the efforts of the dedicated employees who have grown Market Metrics and Matrix Solutions into industry leaders.”
Subject to regulatory approvals, the transaction is expected to close in FactSet’s fourth quarter of fiscal 2016, with the proceeds from the sale being primarily used for share repurchases under the Company’s existing program. On 19 May, 2016, FactSet’s Board of Directors approved a USD165 million expansion of the existing share repurchase program. The sale is not expected to have a material impact on FactSet’s fourth quarter fiscal 2016 or full-year fiscal 2017 results.
SunTrust Robinson Humphrey acted as financial advisor and Cravath, Swaine & Moore LLP acted as legal advisor to FactSet on this transaction.
