- Firms combine best-in-class private market data and analytics
with leading public market expertise
- Reinforces commitment to driving innovation and improving
transparency in global private asset investing
- MSCI to host conference call today, August 14, at 11:00 AM
ET
MSCI Inc. (NYSE: MSCI), a leading provider of mission-critical
decision support tools and services for the global investment
community, today announced it has entered into a definitive
agreement to acquire the remaining 66% of The Burgiss Group, LLC
(“Burgiss”) for $697 million in cash. Burgiss is a Hoboken, New
Jersey-based market-leading provider of data, analytics, and
technology solutions for investors in private assets. Since its
initial investment in January 2020, MSCI will have invested an
aggregate of $913 million to acquire all of Burgiss.
With over 35 years of expertise in alternative investments,
Burgiss offers private asset data, analytics, and software
applications, including leading research-quality performance data
that dates back to 1978. The Burgiss dataset covers over 13,000
private asset funds around the world, representing $15 trillion in
cumulative investments across private equity, private real estate,
private debt, infrastructure, and natural resources in 195
countries. Burgiss serves approximately 1,000 clients – limited
partners, general partners, and financial intermediaries – in 40
countries with 650+ employees across the U.S., Europe, Asia
Pacific, and South Africa.
Burgiss’ leadership across all private asset classes complements
MSCI’s own leading position in private real estate, which includes
Real Capital Analytics, acquired in September 2021. MSCI currently
offers private real estate data and analytics covering over one
million properties representing more than $45 trillion in
transactions and portfolio assets in over 170 countries. The
acquisition of Burgiss will provide MSCI with comprehensive data
and deep expertise in all private assets, enabling investors to
evaluate fundamental information, measure and compare performance,
understand exposures, manage risk, and conduct robust analytics.
MSCI will also enable investors to compare performance and risk
across both private and public asset classes, which will facilitate
more efficient asset allocations.
This acquisition will also expand MSCI’s robust suite of
multi-asset class technology solutions with the industry leading
Burgiss Caissa Platform, developed exclusively for institutional
investors and providing a comprehensive view of the drivers of
performance and risk in both public and private investments in
total portfolios.
Henry Fernandez, Chairman and Chief Executive Officer, MSCI,
said: “The acquisition of Burgiss marks a transformational
milestone for MSCI and reinforces our commitment to driving
innovation and transparency across the global private asset
investment landscape. By combining Burgiss' comprehensive private
asset data and analytics with MSCI’s expertise in research,
analytics, data and technology for investments across public asset
classes, we are aiming to redefine total portfolio investing and
build solutions that can help investors manage their complex
portfolios and make better informed decisions.
“Burgiss will help us expand one of our key strategic growth
opportunities and generate substantial value for our shareholders
over time. I am confident that our pre-existing partnership with
Burgiss will support our successful integration of this new
business,” he added.
Jim Kocis, Founder and Chief Executive Officer, Burgiss,
commented: “The combination with MSCI marks a significant
landmark event in Burgiss’ journey. In this next phase, our
combined capabilities are poised to create even more powerful
solutions that can help better navigate and drive innovation across
private assets.”
MSCI anticipates funding the purchase consideration from
existing liquidity sources. Burgiss is expected to generate over
$90 million of revenue in 2023 with an EBITDA margin and operating
income margin in the mid-teens. The transaction is expected to
close in the fourth quarter of 2023, subject to regulatory
approvals and customary closing conditions. Burgiss’ financial
results will be presented as part of MSCI’s All Other – Private
Assets reportable segment.
MSCI's senior management will host a conference call to review
this transaction on Monday, August 14, 2023, at 11:00 a.m. Eastern
Time. To listen to the live event, visit the events and
presentations section of MSCI's Investor Relations homepage,
https://ir.msci.com/events-and-presentations, or dial
1-800-715-9871 conference ID: 6900615. A slide presentation
discussing the transaction has been published on MSCI's Investor
Relations website.
Davis Polk & Wardwell LLP acted as legal adviser to MSCI on
the transaction.
About MSCI Inc.
MSCI is a leading provider of critical decision support tools
and services for the global investment community. With over 50
years of expertise in research, data, and technology, we power
better investment decisions by enabling clients to understand and
analyze key drivers of risk and return and confidently build more
effective portfolios. We create industry-leading research-enhanced
solutions that clients use to gain insight into and improve
transparency across the investment process. To learn more, please
visit www.msci.com. MSCI#IR
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, including without limitation, statements relating to the
planned acquisition of The Burgiss Group, LLC and prospects for the
newly acquired business. These forward-looking statements relate to
future events or to future financial performance and involve known
and unknown risks, uncertainties and other factors that may cause
our actual results, levels of activity, performance or achievements
to be materially different from any future results, levels of
activity, performance or achievements expressed or implied by these
statements. In some cases, you can identify forward-looking
statements by the use of words such as “may,” “could,” “expect,”
“intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,”
“predict,” “potential” or “continue,” or the negative of these
terms or other comparable terminology. You should not place undue
reliance on forward-looking statements because they involve known
and unknown risks, uncertainties and other factors that are, in
some cases, beyond MSCI’s control and that could materially affect
actual results, levels of activity, performance or
achievements.
Other factors that could materially affect actual results,
levels of activity, performance or achievements can be found in
MSCI’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2022 filed with the Securities and Exchange Commission
(“SEC”) on February 10, 2023 and in quarterly reports on Form 10-Q
and current reports on Form 8-K filed or furnished with the SEC. If
any of these risks or uncertainties materialize, or if MSCI’s
underlying assumptions prove to be incorrect, actual results may
vary significantly from what MSCI projected. Any forward-looking
statement in this press release reflects MSCI’s current views with
respect to future events and is subject to these and other risks,
uncertainties and assumptions relating to MSCI’s operations,
results of operations, growth strategy and liquidity. MSCI assumes
no obligation to publicly update or revise these forward-looking
statements for any reason, whether as a result of new information,
future events, or otherwise, except as required by law.
Non-GAAP Financial Measures and Other Measures
Measures relating to Burgiss financial results are unaudited and
not presented in accordance with generally accepted accounting
principles (GAAP). Burgiss EBITDA margin is a non-GAAP measure.
This non-GAAP measure should be viewed in addition to, and not in
lieu of, the comparable GAAP measure.
Burgiss EBITDA margin represents Earnings Before Interest,
Income Taxes, Depreciation and Amortization (EBITDA) divided by
revenues. EBITDA is defined by Burgiss as net income before (1)
provision for income taxes, (2) other expense (income), net, (3)
depreciation and amortization of property, equipment and leasehold
improvements and (4) amortization of intangible assets.
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