Credit Rating Information Services of India Ltd (CRISIL) will acquire 100 per cent equity shares of the UK-based analytics firm Coalition Development Ltd, along with its subsidiaries, for Rs 250 crore ($44.8 million approx.) in an all-cash deal.
“The all-cash transaction has a maximum payout of £29 million or Rs 250 crore with earn outs over two years. It will add to CRISIL’s earnings per share from the first year,” a company statement said.
Set up in 2002, Coalition provides analytical research on market peers, revenue opportunities, overall market size & conditions and human capital & technology assets. The UK firm mostly caters to global investment banks and posted revenues of £8 million in 2011.
“Post-acquisition, Coalition will be part of CRISIL’s Global Research and Analytics (GR&A) business,” said Roopa Kudva, MD & CEO of CRISIL. The acquisition would help expand its service offerings and global customer base besides deepening customer relationships, she added.
“We have worked very 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 & CEO of Coalition.
MAPE Advisory Group was the sole advisor to CRISIL on the deal.
Shares of CRISIL gained 0.26% to close at Rs 1,066.85 a unit on the BSE in a weak Mumbai market.
Founded in 1987, Mumbai-based CRISIL provides ratings, research, and risk & policy advisory services across the globe and is majority owned by the global rating firm Standard & Poor’s.
In 2010, CRISIL acquired the knowledge process outsourcing firm in a $12.75 million (Rs 58.25 crore) deal. Earlier in 2004, it had also acquired research & consulting services firm Irevna for $9.4 million.
