Factset Research Systems • Factset • S&P Global
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| cusip global services drives efficient trading |
FactSet will pay over $1.9 billion in cash to buy CUSIP Global Services from S&P Global
FactSet Research Systems Inc. FDS, +1.27% Monday announced an agreement to purchase CUSIP Global Services (CGS) from S&P Global Inc. SPGI, 0.69%, $1.925 billion in cash. FactSet said it will finance the transaction through a combination of available cash and committed financing. The deal is expected to close during the first quarter of 2022. FactSet said CGS, which has an annual revenue of about $175 million, operates a database of 60 data items that identify more than 50 million global financial instruments. “CGS is a unique asset that is highly regarded in the marketplace and provides deep alliances across the financial industry,” said FactSet CEO Phil Snow. "Its core competency in identifying securities aligns well with FactSet's industry-leading data management capabilities." Shares of FactSet and S&P Global remained inactive in pre-market trading. So far this year, FactSet stock is up 44.2% while S&P Global is up 44.1%, SPX, 0.50%, advancing 25.8%.
Fact Sheet for CUSIP Global Services
for $1.925 billion
Market security identifier operator for over 50 years
revenue growth
Consistent and strong margins are very complementary to the situation
Expected to be based on FACTSET-adjusted diluted EPS and adjusted operating margins in the first year
NORUK, Connecticut, December 27, 2021 - FactSet Corporation (NYSE: FDS) (NASDAQ: FDS), the global provider of integrated financial information and analytical applications, today announced that it has entered into a definitive agreement to acquire CUSIP's global services. (CGS) from S&P Global for $1.925 billion in cash. FactSet also expects to receive an estimated tax benefit of approximately $200 million as part of the deal. 1 The acquisition will significantly expand FactSet's critical role in the global capital markets, and advance its open data strategy.
CGS operates a database of 60 different data items that uniquely identifies more than 50 million global financial instruments. It is the basis for the key security files on which front, middle, and back office functions depend. CGS is the exclusive provider of CUSIP and CINS identifiers globally and also serves as the official numbering agency for ISINs in the United States. 2
As part of the FactSet, CGS will continue to carefully oversee the CUSIP system in close partnership with the American Bankers Association (ABA) to ensure a smooth transition and continuous innovation. As a result, CGS will continue to provide reliable services to the global stock market as it develops and grows.
CGS generates annual revenue of approximately $175 million with consistent revenue growth rates in the mid to high single digit range. Expected to generate strong margins and immediately accrue with FactSet's adjusted operating margins. The transaction is also expected to accrue with FactSet's adjusted diluted EPS in the first year of ownership, excluding amortization of the purchase price and one-time integration costs.
CGS will operate as part of FactSet Content and Technology Solutions (CTS). The acquisition, on a pro forma basis, will increase CTS' annual subscription value (ASV) to more than $425 million. CGS's expert and trusted team will report to Jonathan Reeve, Executive Vice President and Head of CTS, FactSet.
“We are excited to welcome the talented CGS team to the FactSet family,” said Phil Snow, CEO of FactSet. "CGS is a unique, highly regarded asset in the marketplace that provides deep alliances across the financial industry. Its core competency in identifying securities aligns well with FactSet's industry-leading data management capabilities. We believe this acquisition will greatly benefit FactSet's customers, employees, and shareholders."
“CGS has provided outstanding service, reliability and innovation to the global stock market for more than 50 years, and I am confident that FactSet will continue to build on that legacy,” said Douglas L. Peterson, President and CEO of S&P Global. .
“The American Bankers Association looks forward to working with FactSet as our new partner to guide the CUSIP system,” said Rob Nichols, ABA President and CEO. "Building on a strong foundation, we are confident that FactSet has the resources, experience and innovation needed to expand CUSIP as it meets the evolving needs of market participants around the world. We are excited for the future."
Financing and closing conditions
FactSet will finance the transaction through a combination of cash in hand and committed financing. The acquisition is subject to usual closing conditions, including regulatory approvals and completion of the merger of S&P Global and IHS Markit. The transaction is expected to close during the first quarter of 2022.
Consultants
FactSet's advisors on the transaction include Centerview Partners LLC as financial advisor and Cravath, Swaine & Moore LLP as legal advisor.
conference call
FactSet will host a conference call to discuss this transaction on Wednesday, January 5, 2022 at 11:00 AM ET. The call will be broadcast live on FactSet Investor Relations. The following information is provided to those who wish to participate:
Participants from the United States: (833) 726-6487
International Participants: (830) 213-7677
Passcode: 369932
The archived webcast with accompanying slides will be available in FactSet Investor Relations for one year after the end of the live event. The call transcript will also be available via the FactSet workstation or the web. An audio replay of this conference will also be available through January 12, 2022, via the following phone numbers: (855) 859-2056 in the United States and (404) 537-3406 internationally using the passcode 3699321.
forward-looking statements
This press release contains forward-looking statements that are based on management's current expectations, assumptions, estimates, forecasts and projections about the industries in which FactSet operates, FactSet's future performance, future events and conditions, and management's beliefs and assumptions. All statements that address expectations, guidance, expectations or expectations about the future, including statements regarding the Company's growth strategy and product development, revenue, future financial results, projected growth, market position, contributions, projected expenditures, and trends in FactSet's business and financial results, are forward-looking statements. Forward-looking statements may be identified by words such as “expect”, “believe”, “expect”, “plan”, “intend”,
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About FactSet
FactSet (NYSE: FDS | NASDAQ: FDS) provides superior flexible content, analytics and technology to help more than 162,000 users see and seize the opportunity sooner. We empower investment professionals to outperform with informed insights, workflow solutions across the portfolio lifecycle, and industry-leading support from...Two specializations. We are proud to have received numerous awards for our analytics and data-driven solutions, with the distinction of being recently added to the S&P 500, and repeatedly awarded a 100 in the Human Rights Campaign's Corporate Equity Index® for inclusion of LGBTQ+ policies and practices. Subscribe to our thought leadership blog to get new insight delivered daily at insight.factset.com. Learn more at www.factset.com and follow us on Twitter: www.twitter.com/factset.
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