MSCI in largest deal yetApril 2010
RiskMetrics has announced that it is being acquired by investment consultants MSCI in what is the biggest development yet in the consolidation of the sustainability research industry.
MSCI is expected to purchase the company in a $1.6billion (£1bn, €1.2bn) deal by the autumn, subject to shareholder approval, in the latest of a succession of mergers in the sector.
During the past year RiskMetrics has itself acquired the two large research houses KLD Research and Innovest.
Last year also saw Thomson Reuters’ purchase of ASSET4, mergers between the Swiss companies INRate and CentreInfo, as well as the joining together of Canada’s Jantzi Research and the pan-European Sustainalytics.
RiskMetrics is thought to have offered itself for sale. MSCI, which provides mainstream investment research and runs the MSCI World stock market index, says it will cut $50million in costs by shedding staff and relocating offices to emerging markets such as Mexico and India.
The move will be MSCI’s first foray into corporate responsibility related research. The company says the buyout will allow RiskMetrics to have a broader geographical reach.
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