MSCI to acquire remaining 66% of The Burgiss Group for $697 million in cash

MSCI Inc.
MSCI,
+0.39%,
a provider of equity, fixed income, real estate indexes, multi-asset portfolio analysis tools, ESG and climate products, said Monday it has agreed to acquire the remaining 66% of The Burgiss Group LLC for $697 million in cash. Burgiss is a Hoboken, N.J.-based alternative investments company. MSCI will have invested a total of $913 million to acquire the company. “The acquisition of Burgiss will provide MSCI with comprehensive data and deep expertise in all private assets, enabling investors to evaluate fundamental information, measure and compare performance, understand exposures, manage risk, and conduct robust analytics,” the company said in a statement. MSCI will fund the deal with existing liquidity sources. Burgiss is expected to generate more than $90 million of revenue in 2023 and to achieve an operating income margin in the mid-teens. The deal is expected to close in the fourth quarter. MSCI’s stock has gained 18% in the year to date, while the S&P 500
SPX,
-0.11%
has gained 16%.