FactSet has announced it has agreed to acquire CGS, the exclusive provider of CUSIP and CINS identifiers globally which also acts as the official numbering agency for ISIN identifiers in the United States.
The deal, worth $1.925 billion in cash, awaits regulatory approval and the consummation of the S&P Global and IHS Markit merger. S&P Global was required by the European Commission to sell CGS in order to go forward with the acquisition of IHS Markit for $44 billion.
“Unique Asset WIth Tremendous Market Recognition”
FactSet is about to enhance its role in the global capital markets, advancing its open data strategy, as CGS becomes part of FactSet Content and Technology Solutions (CTS) with the team reporting to Jonathan Reeve, Executive Vice President and Head of CTS, FactSet.
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 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,” said 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,” said Rob Nichols, President and CEO of the ABA. “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.”
CGS was founded by the American Bankers Association in 1968. Together, they steward the CUSIP system and serve the global securities market. The firm manages a database of 60 different data elements uniquely identifying more than 50 million global financial instruments.
S&P Global and IHS Markit Offload Businesses Ahead of Merger
In order to meet anti-trust regulations, S&P Global decided to sell securities data solutions provider CUSIP Global Services (CGS) to FactSet, but IHS Markit was also required to make a sale, its Base Chemicals business to News Corp for $295 million. Base Chemicals provides price data and analysis on key industrial chemicals. S&P Global was also required to sell its Leveraged Commentary and Data business in order to obtain regulatory approval.
As to CGS, the firm generates annual revenues of approximately $175 million with consistent revenue growth rates in the mid- to high-single digit range. The margins are expected to remain robust following the deal and to be immediately accretive to FactSet’s adjusted operating margins.