FactSet to acquire CUSIP and CINS identifier CGS for $1.925 billion
At the request of the European Commission, S&P Global is divesting CGS in order to secure regulatory approval for its pending merger agreement with IHS Markit.
FactSet has agreed to acquire CUSIP Global Services (CGS) from S&P Global for $1.925 billion in cash in a deal that will significantly expand FactSet’s critical role in the global capital markets, advancing its open data strategy.
An estimated tax benefit of approximately $200 million is also expected to reach the accounts of FactSet as part of the transaction.
CGS identifies more than 50 million financial instruments
CGS has been an operator of Market Standard Security Identifiers for more than 50 years, currently managing a database of 60 different data elements uniquely identifying more than 50 million global financial instruments.
The firm is the exclusive provider of CUSIP and CINS identifiers globally and also acts as the official numbering agency for ISIN identifiers in the United States.
The change in ownership will not change that. CGS will continue to carefully steward the CUSIP system in close partnership with the American Bankers Association (ABA).
CGS will become part of FactSet Content and Technology Solutions (CTS) and the team will report to Jonathan Reeve, Executive Vice President and Head of CTS, FactSet.
Phil Snow, Chief Executive OFficer at 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.”
Douglas L. Peterson, President and CEO of S&P Global, commented: “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.”
Rob Nichols, President and CEO of the ABA, added: “The American Bankers Association is looking forward to working with FactSet as our new partner to steward the CUSIP system. 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.”
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Awaits regulatory approval and S&P Global – IHS Markit merger
CGS generates annual revenues of approximately $175 million with consistent revenue growth rates in the mid- to high-single digit range and it is expected to deliver robust margins and be immediately accretive to FactSet’s adjusted operating margins. The acquisition, on a pro forma basis, will increase CTS’s Annual Subscription Value (ASV) to more than $425 million.
FactSet will fund the transaction through a combination of cash-on-hand and committed financing. The acquisition is subject to customary closing conditions, including regulatory approvals and the consummation of the S&P Global and IHS Markit merger. The transaction is expected to close during the first calendar quarter of 2022.
At the request of the European Commission, S&P Global is divesting CGS in order to secure regulatory approval for its pending merger agreement with IHS Markit.
ABA launched the CUSIP system with CGS in 1968 to improve operating efficiencies across the industry based on a standard method of identifying securities.
