MSCI Inc (NYSE:MSCI) reported the acquisition of Carbon Delta over the weekend.
The New York-based MSCI, a leading provider of critical decision support tools and services for the global investment community, announced the deal Monday.
MCSI says the Carbon Delta integration will expand its robust suite of climate risk capabilities with state-of-the-art modeling technology that supports climate scenario analysis and forward-looking assessment of transition and physical risks, as well as extensive company-level analysis of publicly traded companies globally.
Founded in 2015, Carbon Delta is a global leader for climate change scenario analysis. Together, according to Monday’s news release, "MSCI and Carbon Delta will create an extensive climate risk assessment and reporting offering for the institutional market, providing global investors with solutions to help them better understand the impact of climate change on their investment portfolios and comply with mandatory and voluntary climate risk disclosure initiatives and requirements."
MSCI official Remy Briand was quoted in the release as saying, "We believe climate change will become one of the most important investment factors over the long term. Institutional investors should be able to analyze the exposure of their portfolios to climate risk while also being able to report on their climate strategy."
The transaction is expected to close within the next month, subject to customary closing conditions. The business is expected to add approximately $4 to $5 million of recurring expenses to the ESG operating segment within MSCI’s "All Other" reporting segment. The purchase will be funded through existing cash on hand.
Shares lost two cents to $241.25
