FactSet is to acquire CUSIP Global Services (CGS) from S&P Global for US$1.925 billion. CGS will function as a part of FactSet Content and Technology Solutions (CTS).
The acquisition will expand FactSet’s role in the global capital markets, advancing its open data strategy.
CGS is the provider of CUSIP and CINS identifiers globally and also acts as the official numbering agency for ISIN identifiers in the US.
As part of FactSet, CGS will continue to steward the CUSIP system in close partnership with the American Bankers Association (ABA) to ensure both a transition and continued innovation.
The acquisition, on a pro forma basis, will increase CTS’s annual subscription value to more than $425 million.
The transaction is expected to be accretive to FactSet’s adjusted diluted earnings per share in the first year of ownership, excluding purchase price amortisation and one-time integration costs.
CGS’s team will report to Jonathan Reeve, executive vice president and head of CTS, FactSet.
Phil Snow, CEO of FactSet, says: “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.”
Rob Nichols, president and CEO of the ABA, comments: “Building off a strong foundation, we are 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 are excited for the future.”
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