Moody’s Corporation has acquired RiskFirst, a FinTech company providing risk analytic solutions for the asset management and pension fund communities.
The acquisition positions Moody’s Analytics to extend its range of market-leading risk solutions to the institutional buy-side.
RiskFirst’s award-winning PFaroe platform is a leading risk solution for US and UK defined benefit pension markets, supporting over 3,000 plans and more than USD1.4 trillion in assets. RiskFirst also offers innovative solutions for the institutional investment market, including endowments, foundations and asset managers.
“RiskFirst sits at the heart of the buy-side and asset owner ecosystem and is known for its specialised expertise and high-quality products,” says Mark Almeida, President of Moody’s Analytics. “Adding RiskFirst’s platform to Moody’s Analytics’ product offering creates significant opportunities for growth and demonstrates our commitment to extend our reach and capabilities to the buy-side and asset owner community.”
Asset owners are increasingly seeking more sophisticated risk solutions, supported by advanced technology and analytics, to address growing financial management, funding and capital management challenges. This acquisition creates opportunities to extend the analytical capabilities of RiskFirst’s platform and to develop new solutions to meet evolving customer needs.
“Combining Moody’s Analytics scale, reach and capabilities with RiskFirst’s leading solutions and extensive customer base creates a strong value proposition for buy- side institutions and asset owners,” says Matthew Seymour, CEO of RiskFirst. “This deal will enhance our capabilities while building on what has made RiskFirst successful: a sophisticated, technically excellent product combined with superior service and support.”
The terms of the transaction were not disclosed. Moody’s expects the acquisition of RiskFirst to be accretive to earnings per share on a GAAP basis in 2022. On an adjusted EPS basis, which excludes purchase price amortisation, the transaction is expected to be accretive in 2021. RiskFirst generated GBP16.5 million of revenue in 2018. The transaction was funded with offshore cash on hand.
