Global data and information provider MSCI has entered into a definitive agreement to acquire the remaining 66% of The Burgiss Group for $697 mln (€631 mln) in cash.
Burgiss is a Hoboken, New Jersey-based provider of data, analytics, and technology solutions for investors in private assets. Since its initial investment in January 2020, MSCI will have invested an aggregate of $913 mln to acquire all of Burgiss.
According to the firms, the deal for Burgiss complements MSCI’s own position in private real estate, which includes Real Capital Analytics, acquired in September 2021.
Henry Fernandez, chairman and CEO, MSCI, said: 'The acquisition of Burgiss marks a transformational milestone for MSCI and reinforces our commitment to driving innovation and transparency across the global private asset investment landscape.
'By combining Burgiss' comprehensive private asset data and analytics with MSCI’s expertise in research, analytics, data and technology for investments across public asset classes, we are aiming to redefine total portfolio investing and build solutions that can help investors manage their complex portfolios and make better informed decisions.'
With over 35 years of expertise in alternative investments, Burgiss supplies private asset data, analytics, and software applications, including performance data that dates back to 1978.
The Burgiss dataset covers over 13,000 private asset funds around the world, representing $15 trn in cumulative investments across private equity, private real estate, private debt, infrastructure, and natural resources in 195 countries.
Burgiss serves approximately 1,000 clients in 40 countries with 650+ employees across the US, Europe, Asia Pacific, and South Africa.
MSCI currently offers private real estate data and analytics covering over one million properties representing more than $45 trn in transactions and portfolio assets in over 170 countries.
Jim Kocis, founder and CEO, Burgiss, commented: 'The combination with MSCI marks a significant landmark event in Burgiss’ journey. In this next phase, our combined capabilities are poised to create even more powerful solutions that can help better navigate and drive innovation across private assets.'
MSCI anticipates funding the purchase consideration from existing liquidity sources. Burgiss is expected to generate over $90 mln of revenue in 2023 with an EBITDA margin and operating income margin in the mid-teens.
The transaction is expected to close in the fourth quarter of 2023, subject to regulatory approvals and customary closing conditions. Burgiss’ financial results will be presented as part of MSCI’s All Other – Private Assets reportable segment.
Davis Polk & Wardwell acted as legal adviser to MSCI on the transaction.
