MSCI announces takeover of IPD for EUR 96m

New York-listed MSCI has entered into a definitive agreement to acquire IPD Group for a purchase price of around $125 mln (EUR 96 mln), funded through existing cash.

IPD is a leading provider of real estate investment performance benchmarking, performance analysis, market indices, risk management tools and market research to the owners, institutional investors, managers, lenders on, and occupiers of, real estate.

The acquisition is subject to customary closing conditions for transactions of this nature.

'The acquisition of IPD is part of our core strategy to provide investment decision support tools to institutional investors across all major asset classes,' said Henry Fernandez, Chairman and CEO, MSCI Inc. 'This is an exciting addition to our business. We’ve seen significant demand from institutional investors globally for better coverage of private markets. The real estate investment market presents considerable opportunities for growth, and we look forward to helping to accelerate the institutionalization and globalization of real estate as an asset class.'

MSCI said it expects its global footprint, strong relationships with institutional investors, technological and operational expertise to enhance IPD’s existing products and services. The addition of IPD will enable MSCI to expand its multi-asset class offering by integrating private real estate assets into its models, and by adding real estate benchmarks to its family of market leading indices.

For the year ended December 31, 2011 and the six-month period ended June 30, 2012, IPD had revenues of $47.7 mln and $26.4 mln respectively. The transaction is expected to close during the fourth quarter of 2012.

Davis Polk & Wardell and Allen & Overy acted as legal advisers to MSCI. Lazard & Co. was lead adviser to IPD Group, supported by Tom Van Oss and Portico Capital, and Linklaters acted as legal advisers, supported by Addis Law.