Crisil buys UK firm for 1.5mn pound

Domestic credit rating major Crisil announced it had acquired the London-based EconoMatters and its four subsidiary companies""Gas Strategies Consulting Ltd, Alphatania Ltd, Gas Matters Ltd and Overview Conferences Ltd""for £1.5 million, outbidding a few US and European companies.

This marks Crisil's first acquisition overseas. Three Crisil executives will be joining the EconoMatters board. They are: Crisil Managing Director & CEO R Ravimohan, Executive Director and COO Hemant Joshi, and Executive Director & Chief Rating Officer Roopa Kudva.

Ravimohan said the rating agency planned to participate in the greater global spread and growth of EconoMatters.

The deal size was competitive for the foreign entity's shareholders and was around 15 per cent of Crisil's net worth, Crisil said in a media release. The entire payment will be met through Crisil's internal accruals. The combined revenues of Crisil and EconoMatters were over $22 million last year.

EconoMatters and its subsidiaries are leading providers of business advice and information services to the energy and gas industry, serving global majors, multilateral institutions and leading international banks.

Its clients include top global leaders like BP, Shell, ExxonMobil, Total, BG, ChevronTexaco, RWE, Petronas, Statoil, ConocoPhillips, Gasunie, Gaz de France, NationalGridTransco, Sasol, as well as international banks. ABN Amro, Societe Generale, HSBC and Citigroup, and export credit agencies such as JBIC, SACE, ECGD and US Exim along with multilaterals such as the World Bank and EBRD.

Following the acquisition, the board of EconoMatters will be reconstituted. Three of the present EconoMatters board members will join the new company -- Clare Spottiswoode will be the chairman, James Ball will serve as president and chief mentor and David Ledesma will act as managing director and chief executive.

The gas and energy sector has become very active off late, and will become the centre of geo-politics, going forward, Ravimohan said. "With new oil reserves being found and new pipelines being set up, the expertise and in depth knowledge of EconoMatters will enhance our ability to service this sector better and keep pace with the new geo-political business models as they emerge," he added.

Crisil is eyeing to capture emerging opportunities in the gas business across the world. "Our aspirations are to be a global leader in this business, and we believe that with EconoMatters' expertise and support we will succeed," said Crisil executive director & COO Hemant Joshi.