FactSet Acquires CUSIP Global Services for $1.9B

The financial information and analysis provider FactSet announced Monday (Dec. 27) in a press release it will acquire CUSIP Global Services (CGS) from S&P Global for $1.925 billion in cash.

The company said it expects to also gain an estimated tax benefit of approximately $200 million as part of the agreement, which will also “will significantly expand FactSet’s critical role in the global capital markets, advancing its open data strategy.”

CGS operates a database that uses 60 different data elements that uniquely identify more than 50 million global financial instruments. It is the exclusive provider of CUSIP and CINS internationally, and is the official numbering agency for ISIN identifiers in the United States.

CUSIP – Committee on Uniform Security Identification Procedures – is a nine-character alphanumeric identifier for issuers and their financial instruments. Launched in 1968 by the American Banking Association, it is managed by CGS on the association’s behalf.

“As part of FactSet, CGS will continue to carefully steward the CUSIP system in close partnership with the American Bankers Association (ABA) to ensure both a seamless transition and continued innovation,” the company said. “As a result, CGS will continue to reliably serve the global securities market as it evolves and grows.”

According to FactSeat, CGS generates yearly revenues of about $175 million “with consistent revenue growth rates in the mid- to high-single digit range.”

CGS will function as part of FactSet’s Content and Technology Solutions arm, a move that will increase the solution’s annual subscription value to more than $425 million.

“We are excited to welcome CGS’s talented team to the FactSet family,” said Phil Snow, CEO of FactSet. “CGS is a unique asset with tremendous market recognition providing deep alliances across the financial industry. Its core competency in securities identification aligns well with FactSet’s industry leading data management capabilities. We believe this acquisition will greatly benefit FactSet’s clients, employees and shareholders.”