FactSet Reveals Sale of Market Metrics Business for $165M to Asset International

FactSet Research Systems Inc.

disclosed Monday that it reached a definitive agreement to divest its market research business to Asset International, a portfolio firm of Genstar Capital, for about $165 million. According to the company the divested unit focused on advisory-sold investments, as well as, insurance, comprising Market Metrics and Matrix Solutions. The company also said that the deal provided a potential for an additional earn-out of $10 million based on the achievement of some growth targets over the next two years. FactSet said that it expects the transaction to close in its fourth quarter of fiscal 2016, subject to customary closing conditions. The company indicated that the proceeds from the sale would be primarily used for share repurchases under its existing program. On May 19, its Board approved a $165 million expansion of the current share buyback program. However, the company indicated that the sale is not expected to have any material impact on its fourth quarter fiscal 2016 or full-year fiscal 2017 results. The company's CEO, Phil Snow, commented, "This transaction is consistent with our long-term strategic direction and our commitment to delivering value to our shareholders. We appreciate the efforts of the dedicated employees who have grown Market Metrics and Matrix Solutions into industry leaders." While SunTrust Robinson Humphrey acted as its financial advisor, Cravath, Swaine & Moore LLP acted as legal advisor on this transaction. The stock closed at $155.38 on Friday.