CRISIL announced on Friday that it had entered into an agreement to buy 100% equity shares of the UK-headquartered Coalition Development along with its subsidiaries. Coalition provides high-end analytics, mainly to leading global investment banks and reported 2011 revenues of GBP 8 million.
The all-cash transaction has a maximum payout of GBP 29 million (around R250 crore) with earn outs over two years, linked to achievement of specified milestones for the company’s future revenues and profits. The acquisition will add to the earnings per share of Crisil from the first year. The transaction is subject to regulatory approvals. Coalition will be part of Crisil?s Global Research and Analytics (GR&A) business.
Coalition?s analytics provide a clear, actionable picture of the markets and are used by boards, strategy teams and top management at leading financial services institutions. Roopa Kudva, the managing director and CEO of Crisil, said, ?Coalition?s cutting-edge analytical capabilities, in-depth understanding of the workings of financial markets and strong relationships with its clients will enable Crisil Global Research & Analytics to widen service offerings, diversify its client base and deepen client relationships.?
?We have worked hard to find the right partner to take Coalition to the next level of growth and we are delighted to become a part of Crisil,? said Trevor Foster-Black, chairman and CEO of Coalition. ?Crisil is a dynamic and rapidly growing analytical company with tremendous credibility, a strong business profile and robust balance sheet. I see a very bright future for our business as a member of the Crisil group.?