Blog Coverage: Moody's Acquires Dutch Business Intelligence Provider Bureau Van Dijk
Upcoming AWS Coverage on TriNet Group Post-Earnings Results
LONDON, UK / ACCESSWIRE / May 16, 2017 / Active Wall St. blog coverage looks at the headline from credit ratings agency Moody's Corp. (NYSE: MCO) announced on May 15, 2017 that it had signed an agreement to acquire a global provider of business intelligence and Company information - Bureau van Dijk. Moody's acquired Bureau van Dijk from Swedish private equity firm EQT for €3 billion (approximately $3.27 billion.). The acquisition will strengthen Moody's market share and position in the credit risk and analytical insight business. Register with us now for your free membership and blog access at:
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One of Moody's competitors within the Business Services space, TriNet Group, Inc. (NYSE: TNET), reported on May 02, 2017, its financial results for Q1 ended March 31, 2017. AWS will be initiating a research report on TriNet in the coming days.
Today, AWS is promoting its blog coverage on MCO; touching on TNET. Get all of our free blog coverage and more by clicking on the link below:
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About the deal
The finer details and terms of the acquisition were not disclosed by both Companies. However, the transaction is expected to close in end of Q3 2017, subject to anti-trust clearance, regulatory approvals, and other closing conditions. Moody's Corp. plans to use a mix of offshore cash and funds from new debt to finance the deal.
Once the transaction is completed, Bureau van Dijk will be integrated into Moody's Analytics' Research, Data & Analytics (RD&A) unit.
Commenting on the acquisition, Raymond McDaniel, President and CEO of Moody's said:
"This acquisition provides significant opportunities for Moody's Analytics to offer complementary products, create new risk solutions and extend its reach to new and evolving market segments."
Mark Schwerzel, Deputy CEO of Bureau van Dijk added:
"The addition of Bureau van Dijk's powerful information platform to Moody's Analytics' suite of risk management solutions presents a wide range of opportunities for us to better serve our combined customer base."
About Bureau van Dijk
Amsterdam based Bureau van Dijk Electronic Publishing is known as Bureau van Dijk. It is owned by Swedish private equity firm EQT through its EQT VI fund. Bureau van Dijk provides a powerful, comparable resource on private Companies and has information on more than 220 million businesses across the globe. In the last 30 years of its operations, the Company has built a strong network of over 160 independent information providers to create a single platform that connects customers with data and helps to address a wide range of business challenges. Since EQT's investment in September 2014, Bureau van Dijk has continued to strengthen its market leading position while accelerating its financial growth.
The Company has presence in over 30 cities across the globe with over 800 employees. The Company recorded revenues of $281 million, with EBITDA of $144 million in FY16.
How Moody's benefits from the acquisition?
New York based Moody's provides credit ratings, research, tools and analysis to clients in the financial services industry. Moody's Corporation has two main business verticals - Moody's Investors Service and Moody's Analytics. Moody's Investors Service provides credit ratings and research on debt instruments and securities while Moody's Analytics offers cutting-edge software, advisory services, and research for credit and economic analysis and financial risk management. Moody's Corp. has a global presence in over 36 countries and is supported by a team of approximately 10,700 people worldwide. Moody's reported revenue for FY16 was $3.6 billion.
Moody's expects that the acquisition of Bureau van Dijk will result in annual cost synergies of over $45 million by FY19 and over $80 million by FY21. After excluding the purchase price amortization and one-time integration costs, the transaction is expected to be accretive to Moody's EPS in FY18. However, on a GAAP basis the transaction is expected to be accretive to Moody's EPS in FY19.
The acquisition will bolster Moody's position as a leader in the risk data and analytical insight arena. Apart from this, the transaction will enable Moody's to tap into a new revenue stream and expand its client base.
This is the second acquisition by Moody's in the current year. Moody's had acquired Frankfurt, Germany based SCDM's structured finance data and analytics business in February 2017 to expand the global footprint of Moody's Analytics' structured finance business.
Stock Performance
At the close of trading session on Monday, May 15, 2017, Moody's share price finished the trading session at $116.11, rising 1.17%. A total volume of 1.17 million shares exchanged hands, which was higher than the 3 months average volume of 890.57 thousand shares. The stock has rallied 6.87% and 16.64% in the last three months and past six months, respectively. Furthermore, since the start of the year, shares of the Company have surged 23.60%. The stock is trading at a PE ratio of 53.95 and has a dividend yield of 1.31%. The market capital of the stock was $22.33 billion.
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