MSCI Acquires RiskMetrics (MXB, RISK)
MSCI Inc. (NYSE: MXB) plans to buy RiskMetrics Group (NYSE:RISK) for $1.55 billion. MSCI Inc. (MXB) is a leading provider of investment decision support tools, whereas RiskMetrics (RISK) provides risk management and corporate governance services and products.
The deal will be funded with cash and stock. MSCI Inc. has valued RiskMetrics at $21.75 a share. This represents a premium of 17% over Friday's closing price. MSCI Inc. is expected to pay $16.35 in cash. RiskMetrics shareholders will also receive 0.1802 MSCI share for every RiskMetrics share held.
Henry Fernandez, Chairman and CEO of MSCI Inc., said, “"This deal marks a significant milestone in our effort to become the leading provider of investment decision support tools". He also claimed that the deal would add to MSCI’s earnings per share.
