Oct 31 Investment analysis and market index
company MSCI Inc said it will buy IPD Group Limited for
$125 million to enter the real-estate benchmarking business.
London-based IPD provides real estate investment
benchmarking, performance analysis, market indices and market
research to institutional investors, fund managers and owners of
"We have seen significant demand from institutional
investors globally for better coverage of private markets. The
real estate investment market presents considerable
opportunities for growth," MSCI Chief Executive Henry Fernandez
said in a statement.
IPD had revenue of about $47.7 million for the year ended
December 31, 2011.
The deal, which will be funded through existing cash, is not
expected to have a material impact on MSCI's earnings in 2012,
the company said.
The announcement was not unexpected, as MSCI had confirmed
earlier this month it was in talks with IPD for a potential
Index providers like MSCI are facing pressure as major fund
companies such as Vanguard Group, Charles Schwab Corp
and BlackRock Inc are all looking to cut costs on their
Earlier this month, Vanguard, the largest U.S. fund manager
and MSCI's second largest index licensing customer, said it was
defecting to cheaper rivals, stoking fears that other customers
would use Vanguard's exit as a leverage to demand lower fees.
MSCI's shares, which touched a three-year low earlier this
month on Vanguard's exit, closed at $27.54 on Friday on the New
York Stock Exchange. Major U.S. stock markets were closed on
Monday and Tuesday due to Hurricane Sandy.