(Alliance News) - StatPro Group PLC said Wednesday that it will buy indices and benchmark business unit of ECPI Group Srl for EUR2.9 million, or GBP2.6 million, in cash.
The company, which provides cloud-based portfolio analysis and asset pricing services for the asset management industry, has acquired the environmental, social and governance research and index business unit of ECPI Group, a Italian advisory services business.
The acquisition is expected to enhance StatPro's adjusted earnings per share in the first full year following acquisition
The acquired business provides environmental, social and governance indices and benchmarks and related services including constructing client specific benchmarks. It carries out research and produces ratings on an active universe of approximately 3,500 companies globally and uses these ratings to qualify companies for inclusion into a series of environmental, social and governance investable indices, or to provide portfolio screening services.
The research and index business has annualised recurring revenue of around EUR900,000 and generated EUR300,000 earnings before interest, taxes, depreciation and amortisation in 2018.
StatPro will pay an initial consideration of EUR900,000 million in cash from existing debt facilities on completion, expected on July 1, and a deferred contingent consideration of EUR2.0 million based upon the business achievement of certain financial targets.
"This earnings enhancing acquisition strengthens our Index and Benchmarks offering by Source: StatPro, and provides a comprehensive ESG research and rating capability across our entire data and analytics division," said StatPro Chief Executive Justin Wheatley.
Shares in StatPro were trading 3.0% lower at 125.12 pence each on Wednesday afternoon.