- FactSet (NYSE:FDS) (NASDAQ:FDS) announced today it is buying CUSIP Global Services (CGS) from S&P Global for $1.925 billion in cash. These are the details.
FactSet (NYSE:FDS) (NASDAQ:FDS) — a global provider of integrated financial information and analytical applications — announced that it has entered into a definitive agreement to buy CUSIP Global Services (CGS) from S&P Global for $1.925 billion in cash. And FactSet is expecting to receive an estimated tax benefit of approximately $200 million as part of the transaction. The deal will significantly expand FactSet’s critical role in the global capital markets, advancing its open data strategy.
CGS manages a database of 60 different data elements uniquely identifying more than 50 million global financial instruments. And it is the foundation for security master files relied on by critical front, middle and back-office functions. CGS is known as the exclusive provider of CUSIP and CINS identifiers globally and also acts as the official numbering agency for ISIN identifiers in the United States.
As part of FactSet, CGS is going to continue to carefully steward the CUSIP system in close partnership with the American Bankers Association (ABA) to ensure both a seamless transition and continued innovation. And as a result, CGS will continue to reliably serve the global securities market as it evolves and grows.
CGS generates annual revenues of about $175 million with consistent revenue growth rates in the mid- to high-single digit range. And it is expected to deliver robust margins and be immediately accretive to FactSet’s adjusted operating margins. The deal is also expected to be accretive to FactSet’s adjusted diluted EPS in the first year of ownership, excluding purchase price amortization and one-time integration costs.
CGS is going to function as a part of FactSet Content and Technology Solutions (CTS). The deal – on a pro forma basis – will increase CTS’s Annual Subscription Value (ASV) to over $425 million. And CGS’s experienced and trusted team will report to Jonathan Reeve, Executive Vice President and Head of CTS, FactSet.
FactSet is going to fund the transaction through a combination of cash-on-hand and committed financing. And the acquisition is subject to customary closing conditions, including regulatory approvals and the consummation of the S&P Global and IHS Markit merger. The deal is expected to close during the first calendar quarter of 2022.
“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.”
— Phil Snow, CEO, FactSet
“CGS has delivered outstanding service, reliability, and innovation to the global securities market for more than 50 years, and I am highly confident that FactSet will continue to build on this heritage.”
— Douglas L. Peterson, President and CEO of S&P Global
“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 for the future.”
— Rob Nichols, President and CEO of the ABA