Moody & # 39 ;s Corp. said on Thursday that it will acquire Newark, California-based disaster management risk management solutions Inc. for approximately $ 2.0 billion.
The acquisition is expected to be completed by the end of the third quarter. Moody & # 39 ;s said in a statement that it plans to finance the transaction through a combination of cash on hand and the issuance of new debt.
For the fiscal year ending September 30, RMS is expected to generate approximately $ 320 million in revenue. The acquisition will provide Moody & # 39 ;s insurance data and analytics operations with nearly $ 500 million in annual revenue and "will accelerate the development of the company's global integrated risk capabilities to address the next generation of risk assessment," the company said.
RMS provides more than 400 risk models covering 1
Moody & # 39 ;s said that the deal "builds on Moody & # 39 ;s and RMS complementary customer bases and capacity in the life and P&C insurance and reinsurance segments" and "will meaningfully accelerate Moody & # 39 ;s integrated risk assessment strategy for customers in the insurance industry.