S&P Global Announces Successful Completion of Visible Alpha Acquisition

Rhea-AI Summary

S&P Global has successfully completed the acquisition of Visible Alpha, a financial technology provider, enhancing its fundamental investment research capabilities. The integration of Visible Alpha into S&P Capital IQ Pro aims to provide customers with high-quality investment research, estimates, and analytics. The acquisition is seen as a transformative leap for the platform, with Visible Alpha's offerings enriching S&P Global Market Intelligence's division.

Positive

• Successful completion of the acquisition of Visible Alpha enhances S&P Global's fundamental investment research capabilities.

• Integration of Visible Alpha into S&P Capital IQ Pro provides customers with high-quality investment research, estimates, and analytics.

• Acquisition seen as a transformative leap for the platform, reflecting a commitment to providing top-notch investment offerings.

Negative

• None.

Insights

Financial Analyst

The acquisition of Visible Alpha by S&P Global represents a strategic move to bolster its Market Intelligence offerings. By integrating Visible Alpha's extensive consensus forecast estimates and analytics into the Capital IQ Pro platform, S&P Global is enhancing its value proposition to clients seeking in-depth investment research. Visible Alpha's alignment with investment banks as key contributors indicates a robust pipeline for high-quality data that could contribute to S&P Global's competitive edge in the market.

From a financial standpoint, the mention that the deal is not expected to have a material financial impact on S&P Global's overall finances suggests a well-calculated acquisition strategy, ensuring that the deal complements the existing business without overleveraging the company's resources. For investors, this approach minimizes immediate financial risk while potentially providing long-term value through improved product offerings and customer retention.

Market Research Analyst

With Visible Alpha's innovative technology coming under S&P Global's vast umbrella, there's an anticipated ripple effect on market intelligence standards. The collaboration could set a new benchmark for analytical depth, which is essential for clients making data-driven investment decisions. It may increase reliance on S&P's services, given the enriched data quality and potential for enhanced user experience.

The strategic nature of this acquisition could reflect an industry trend toward data integration and platform consolidation. This may drive smaller competitors to seek partnerships or mergers to remain relevant. Investors should monitor how this consolidation affects the competitive landscape and whether S&P Global can successfully leverage Visible Alpha's capabilities to expand its market share and solidify its leadership in investment research services.

NEW YORK, May 1, 2024 /PRNewswire/ -- S&P Global (NYSE: SPGI) today announced the successful completion of its acquisition of Visible Alpha, the financial technology provider of deep industry and segment consensus data, creating a premium offering of fundamental investment research capabilities on S&P Global Market Intelligence's Capital IQ Pro platform. Visible Alpha will be operated within the S&P Global Market Intelligence division.

"Visible Alpha and its innovative team are an outstanding complement to S&P Global's culture and capabilities," said Adam Kansler, President of S&P Global Market Intelligence. "The integration of Visible Alpha into S&P Capital IQ Pro demonstrates another transformative leap for our platform and reflects our combined commitment to providing customers with the highest quality investment research, estimates and analytics in the market." 

Founded in 2015, Visible Alpha provides consensus forecast estimates, key performance indicators, and analytics from in-depth sell-side analyst models and distributes the data through a variety of distribution channels including a web-based platform, APIs and Feeds. Visible Alpha is backed by a group of investment banks that are key contributors of research and data to the platform. Their continued contributions will further enhance the depth and breadth of the overall Visible Alpha and S&P Capital IQ Pro offering.

S&P Global announced its agreement to acquire Visible Alpha in February 2024. The Company does not expect this transaction to have a material financial impact on S&P Global Market Intelligence or S&P Global as a whole.

Skadden, Arps, Slate, Meagher & Flom LLP is acting as S&P Global's legal advisor. Jefferies LLC is acting as Visible Alpha's exclusive financial advisor and Morgan, Lewis & Bockius LLP is acting as Visible Alpha's legal advisor.

Forward-looking statements are subject to inherent risks and uncertainties. Factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements include, among other things:

• the impact of the acquisition of Visible Alpha, including the impact on the Company's results of operations; any failure to successfully integrate the acquired departments into the Company's operations; and any failure to attract and retain key employees;
• the risk of litigation, unexpected costs, charges or expenses relating to the acquisition;
• risks related to the satisfaction or waiver of the conditions to closing the acquisition (including the failure to obtain necessary regulatory approvals) in the anticipated timeframe or at all, including the possibility that the acquisition does not close;
• the occurrence of any event, change or other circumstance or condition that could give rise to the termination of the acquisition agreement;
• risks related to the ability to realize the anticipated benefits of the acquisition, including the possibility that the expected benefits from the acquisition will not be realized or will not be realized within the expected time period;
• the process by which the Company engages in evaluation of strategic alternatives for Fincentric;
• the Company's ability to identify potential merger or acquisition partners for Fincentric;
• worldwide economic, financial, political, and regulatory conditions (including slower GDP growth or recession, instability in the banking sector and inflation), and factors that contribute to uncertainty and volatility, natural and man-made disasters, civil unrest, public health crises (e.g. pandemics), geopolitical uncertainty (including military conflict and public protests), and conditions that may result from legislative, regulatory, trade and policy changes;
• the volatility and health of debt, equity, commodities, energy and automotive markets, including credit quality and spreads, the level of liquidity and future debt issuances, demand for investment products that track indices and assessments and trading volumes of certain exchange-traded derivatives;
• the demand and market for credit ratings in and across the sectors and geographies where the Company operates;
• the Company's ability to successfully recover should it experience a disaster or other business continuity problem from a hurricane, flood, earthquake, terrorist attack, pandemic, security breach, cyber attack, data breach, power loss, telecommunications failure or other natural or man-made event, including the ability to function remotely during long-term disruptions;
• the Company's ability to maintain adequate physical, technical and administrative safeguards to protect the security of confidential information and data, and the potential for a system or network disruption that results in regulatory penalties and remedial costs or improper disclosure of confidential information or data;
• the outcome of litigation, government and regulatory proceedings, investigations and inquiries;
• concerns in the marketplace affecting the Company's credibility or otherwise affecting market perceptions of the integrity or utility of independent credit ratings, benchmarks, indices and other services;
• the effect of competitive products and pricing, including the level of success of new product developments and global expansion;
• the Company's exposure to potential criminal sanctions or civil penalties for noncompliance with foreign and U.S. laws and regulations that are applicable in the domestic and international jurisdictions in which it operates, including sanctions laws relating to countries such as Iran, Russia, Sudan, Syria and Venezuela, anti-corruption laws such as the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act of 2010, and local laws prohibiting corrupt payments to government officials, as well as import and export restrictions;
• the continuously evolving regulatory environment, in Europe, the United States and elsewhere around the globe, affecting S&P Global Market Intelligence, S&P Global Ratings, S&P Global Commodity Insights, S&P Global Mobility, S&P Dow Jones Indices, and the products those business divisions offer including our ESG products, and the Company's compliance therewith;
• the Company's ability to make acquisitions and dispositions and successfully integrate the businesses we acquire;
• consolidation in the Company's customers, suppliers or competitors;
• the introduction of competing products or technologies by other companies;
• the impact of customer cost-cutting pressures, including in the financial services industry and the commodities markets;
• a decline in the demand for credit risk management tools by financial institutions;
• the level of merger and acquisition activity in the United States and abroad;
• the volatility and health of the energy and commodities markets;
• our ability to attract, incentivize and retain key employees, especially in today's competitive business environment;
• the level of the Company's future cash flows and capital investments;
• the impact on the Company's revenue and net income caused by fluctuations in foreign currency exchange rates;
• the Company's ability to adjust to changes in European and United Kingdom markets as the United Kingdom leaves the European Union, and the impact of the United Kingdom's departure on our credit rating activities and other offerings in the European Union and United Kingdom; and
• the impact of changes in applicable tax or accounting requirements on the Company.

The factors noted above are not exhaustive. The Company and its subsidiaries operate in a dynamic business environment in which new risks emerge frequently. Accordingly, the Company cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the dates on which they are made. The Company undertakes no obligation to update or revise any forward-looking statement to reflect events or circumstances arising after the date on which it is made, except as required by applicable law. Further information about the Company's businesses, including information about factors that could materially affect its results of operations and financial condition, is contained in the Company's filings with the Securities and Exchange Commission, including Item 1A, Risk Factors, in our most recently filed Annual Report on Form 10-K, which can be obtained at its website at http://www.sec.gov.

About S&P Global

S&P Global (NYSE: SPGI) provides essential intelligence. We enable governments, businesses and individuals with the right data, expertise and connected technology so that they can make decisions with conviction. From helping our customers assess new investments to guiding them through ESG and energy transition across supply chains, we unlock new opportunities, solve challenges, and accelerate progress for the world.

We are widely sought after by many of the world's leading organizations to provide credit ratings, benchmarks, analytics and workflow solutions in the global capital, commodity and automotive markets. With every one of our offerings, we help the world's leading organizations plan for tomorrow, today. For more information, visit www.spglobal.com.

Media Contacts
Christina Twomey
S&P Global
+1 (410) 382-3316
christina.twomey@spglobal.com 

Farhan Husain
S&P Global Market Intelligence
+1 347 213 0065
farhan.husain@spglobal.com 

 

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SOURCE S&P Global