CRISIL advances 12% in three trading sessions

The credit rating agency on Thursday said it will acquire the US-based Greenwich Associates and its six subsidiaries for about $40 million.

Greenwich serves over 300 of the top investment banks, corporate banks, commercial banks, asset managers and key players in the market infrastructure space globally. The acquisition will complement Crisil's existing portfolio of products and expand offerings to new segments across financial services including commercial banks and asset and wealth managers. The deal will accelerate Crisil's strategy to be the leading player in the growing market of global benchmarking analytics.

The acquisition will make Crisil a leading player in the global benchmarking analytics market and is subject to regulatory approvals and conditions. The deal is anticipated to close in the first quarter of 2020. Greenwich's partners and their team of approximately 150 people globally will join Crisil following the completion of the transaction.

 

The total cost of the acquisition is $40 million, subject to closing adjustments, and is being done on cash basis.

The announcement was made after market hours on Thursday, 19 December 2019. The stock rose 0.7% to close at Rs 1801.25 on Friday.

Crisil was up 10.2% to Rs 1985, extending its winning streak for third consecutive trading session. The stock has advanced 12.31% in three sessions from its previous closing low of Rs 1767.45 on 18 December 2019.

The counter witnessed an unusual movement in volume. On the BSE, 21,000 shares were traded in the counter so far compared with average daily volumes of 7177 shares in the past two weeks

Crisil reported 16.80% rise in consolidated net profit to Rs 105.13 crore on a 2.45% increase in net sales to Rs 435.88 crore in Q3 September 2019 over Q3 September 2018.

Crisil is India's foremost provider of ratings, data, research, analytics and solutions.

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