Moody's has announced it has acquired RiskFirst the firm behind the PFaroe analytics platform.
The ratings and research agency said the deal would enable its analytics business to extend its range of risk solutions to the institutional buy-side.
RiskFirst currently provides a range of solutions for the institutional investment market - including the PFaroe platform, which currently supports over 3,000 defined benefit schemes in the UK and US markets with a total assets of $1.4trn (£1.15trn).
The terms of the transaction were not disclosed. Moody's said it expects the acquisition of RiskFirst to be accretive to earnings per share on an accounting (GAAP) basis in 2022.
RiskFirst generated £16.5m of revenue in 2018. The transaction was funded with offshore cash on hand.
Moody's Analytics president Mark Almeida said: "RiskFirst sits at the heart of the buy-side and asset owner ecosystem and is known for its specialized expertise and high-quality products.
"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."
Moody's said 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 - noting that this deal created opportunities to extend the analytical capabilities of RiskFirst's platform and to develop new solutions to meet evolving customer needs.
RiskFirst chief executive Matthew Seymour added: "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. 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."
