FactSet, a major provider of integrated financial information and analytical solutions, announced that it has reached an agreement with S&P Global to purchase CUSIP Global Services (CGS) for $1.925 billion in cash. In addition, FactSet anticipates getting a tax benefit of around $200 million as a result of the deal. FactSet’s vital role in the global capital markets will be greatly expanded as a result of the acquisition, which will help the company advance its open data strategy.
Phil Snow, CEO, FactSet, said, “We are excited to welcome CGS’s talented team to the FactSet family. CGS is a unique asset with tremendous market recognition providing deep alliances across the financial industry. Its core competency in securities identification aligns well with FactSet’s industry-leading data management capabilities. We believe this acquisition will greatly benefit FactSet’s clients, employees, and shareholders.”
CGS keeps a database with 60 different data points that uniquely identify approximately 50 million financial products all around the world. It serves as the foundation for security master files, which are used by essential front, middle, and back-office operations. CGS is the world’s only distributor of CUSIP and CINS IDs, as well as the United States’ official numbering agency for ISIN identities.
Rob Nichols, President, and CEO of the ABA said, “The American Bankers Association is looking forward to working with FactSet as our new partner to steward the CUSIP system. Building off a strong foundation, we’re confident FactSet has the resources, experience, and innovation needed to expand CUSIP as it meets the evolving needs of market participants around the world. We’re excited about the future.”
CGS will continue to carefully manage the CUSIP system as part of FactSet, working closely with the American Bankers Association (ABA) to guarantee a smooth transition and continuous innovation. As a result, CGS will continue to service the global securities market in a reliable manner as it advances and expands.
CGS generates roughly $175 million in yearly revenue, with stable revenue growth rates in the mid-to-high single digits. It is projected to generate strong profits and add to FactSet’s adjusted operating margins right away. In addition, excluding purchase price amortization and one-time integration costs, the deal is expected to be accretive to FactSet’s adjusted diluted EPS in the first year of ownership.
