MSCI To Acquire RiskMetrics For $1.55 Billion (MXB, RISK)

MSCI, Inc. (NYSE: MXB), the developer of investment indices, and analytics, has announced the acquisition of RiskMetrics Group, Inc. (NYSE: RISK) for $1.55 billion.

The deal values RiskMetrics at $21.75 per share, and will be funded by a senior secured credit facility of $1.38 billion from Morgan Stanley (NYSE: MS). According to MSCI, the acquisition of RiskMetrics will help the company to expand its portfolio management tools, and invest in financial indices. Additionally, MSCI will be able to save $50 million by eliminating duplicate platforms as both the companies are New York based.

The deal is expected to be concluded in the third-quarter of FY10.