The deal brings together performance measurement with analytics and client reporting.
BISAM Technologies will become a part of FactSet as the result of a $205.2 million acquisition that will eventually tie together performance measurement support with portfolio and risk analytics and client reporting.
FactSet, known for its integrated financial information, analytical applications, and services, has acquired BISAM from Aquiline Capital Partners and company insiders for $205.2 million, officials say.
“As investment processes and asset types become more complex, the financial community is seeking increased insight and transparency on performance and risk across their enterprises,” says Phil Snow, CEO of FactSet, in a prepared statement. “The combination of BISAM and FactSet allows us to better serve the critical workflows throughout the portfolio lifecycle and fulfill our clients’ need for more consistent performance and risk data, throughout their organizations.”
BISAM, which has more than 160 employees worldwide, provides portfolio performance and attribution, multi-asset risk, GIPS composites management and reporting, officials say.
“Many of the world’s largest asset managers use BISAM’s software to evaluate and enhance their investment strategies and better serve their clients,” officials say. B-One is BISAM’s cross-asset solution for performance measurement and seen as a complement to FactSet’s portfolio analytics suite and client reporting solutions. “Simultaneously, its Cognity product (originally owned by FinAnalytica) enhances FactSet’s risk analysis for derivatives and quantitative portfolio construction,” officials add.
“Together, we expect to offer significant advantages to our mutual and respective clients, while creating a collaborative, global environment for our employees,” says Christophe Volard, global head of product development, performance and attribution, and a co-founder of BISAM. The FactSet/BISAM combination is an opportunity to “create scale and bring our industry-leading performance and risk systems to a broader market.”
To facilitate the acquisition, FactSet borrowed $575 million “under a new revolving credit facility to fund the transaction and repay existing debt,” according to FactSet officials.
The annual revenues for BISAM, as of Dec. 31, 2016, were over $28 million. “The transaction is expected to be accretive by $0.02 to adjusted diluted EPS and dilutive by $0.06 to GAAP diluted EPS for the remainder of fiscal 2017,” officials say.
FactSet offers analytics, services, content, and technology to more than 66,000 end-users.
Founded in 1978, FactSet has been publicly held since 1996, and is listed on the New York Stock Exchange (NYSE) and the NASDAQ Stock Market under the symbol FDS, officials say. As of Aug. 31, 2016, FactSet had a market capitalization of $7.12 billion, which is up 9.5 percent over 2015. The company has 43 office locations in 21 countries employing more than 8,500 individuals.