Analytics outfit RiskMetrics is to acquire proxy voting and governance company Institutional Shareholder Services. Financial terms of the deal have not been disclosed.
Combined, RiskMetrics Group and ISS will generate over $200 million in revenue per year with approximately 800 employees across 23 offices serving over 2400 clients worldwide. The two companies say the merger will enable them to expand beyond their core businesses of financial risk management and corporate governance to offer a broad range of data, analytics and advice to investors.
RiskMetrics Group board member, Arthur Levitt, says of the deal: "Corporate governance is now being recognised as a vital fiduciary responsibility. This merger will allow RiskMetrics Group to offer these services to increase shareholder value for more investors."
He says all members of the RiskMetrics Group board and its three investors, Spectrum Equity Investors, General Atlantic, and Technology Crossover Ventures, backed the deal, which is expected to close by year-end or early 2007.
ISS will operate as a separate, wholly-owned subsidiary of RiskMetrics Group with John Connolly remaining CEO and operations largely unchanged. Connolly will also join the RiskMetrics Group board.
Credit Suisse advised ISS in connection with the transaction.