Rating agency CRISIL agreed to acquire Britain-based analytics firm Coalition Development and its subsidiaries for around Rs 250 crore (£29 million), which will help it expand the service offerings and customer base.
“We have entered into an agreement to buy 100 per cent of the equity shares of England-headquartered Coalition Development along with its subsidiaries in an all-cash deal for Rs 250 crore,” CRISIL said.
The deal, advised by Mape Advisory group, has a maximum payout of £29 million with earn-outs over two years linked to achievement of specified milestones for the company’s future revenues and profits, CRISIL said, adding that it will add to its earnings per share from the first year itself.
The transaction is subject to regulatory approvals. Formed in 2002, Coalition, which provides high-end analytics mostly to leading global investment banks, reported topline of £8 million in 2011.
Coalition deploys proprietary analytics and algorithms to provide analytics on market size and dynamics, revenue opportunities and human capital.
Its analytics are used by boards, strategy teams and top management at leading financial services institutions, the statement said, adding Coalition will be a part of CRISIL’s global research & analytics GR&A business.
CRISIL GR&A is a top-ranked provider of high-end research and analytics services. Its teams, based in India, Argentina, China and Poland, annually review over 20 per cent of the global equity derivatives and build and validate over 3,500 models.