CapitalMarket.com - CRISIL inches up on acquisition of UK analytics firm
Hot Pursuit Friday, June 01, 2012 15:10 Hrs IST

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CRISIL inches up on acquisition of UK analytics firm

CRISIL rose 0.55% to Rs 1,070 at 15:06 IST on BSE after the company said it has entered into an agreement to buy 100% of the equity shares of UK-headquartered Coalition Development along with its subsidiaries.

The company made this announcement during trading hours today, 1 June 2012.

Meanwhile, the BSE Sensex was down 232.35 points or 1.43% to 15,986.18.

On BSE, 974 shares were traded in the counter as against average daily volume of 935 shares over the past two weeks.

The stock hit a high of Rs 1,073.50 and a low of Rs 1,057.60 so far during the day.

The mid-cap credit rating agency has an equity capital of Rs 7.02 crore. Face value per share is Re 1.

CRISIL said the acquisition of Coalition will add to the earnings per share (EPS) of CRISIL from the first year. The all-cash transaction has a maximum payout of GBP 29 million (around Rs 250 crore) with earn outs over 2 years, linked to achievement of specified milestones for the company's future revenues and profits, CRISIL said. The transaction is subject to regulatory approvals, the company added.

Coalition will be part of CRISIL's Global Research and Analytics (GR&A) business.

Commenting on the acquisition of Coalition, Roopa Kudva, Managing Director and CEO, CRISIL said, "Coalition's cutting-edge analytical capabilities, in-depth understanding of the workings of financial markets and strong relationships with its clients will enable CRISIL Global Research & Analytics to widen service offerings, diversify its client base and deepen client relationships. We look forward to building upon Coalition's success and working with this highly capable and well-led team".

Commenting on the development, Trevor Foster-Black Chairman, and CEO, Coalition said, "We have worked very hard to find the right partner to take Coalition to the next level of growth, and we are delighted to become a part of CRISIL".

"CRISIL is a dynamic and rapidly-growing analytical company with tremendous credibility, a strong business profile and robust balance sheet. I see a very bright future for our business as a member of the CRISIL group", Trevor added.

Coalition provides high-end analytics, mainly to leading global investment banks. Formed in 2002, Coalition is a dynamic high-growth company firmly established as a premium brand. Coalition reported 2011 revenues of GBP 8 million.

CRISIL's consolidated net profit rose 23.9% to Rs 56.98 crore on 29.3% growth in total income to Rs 234.52 crore in Q1 March 2012 over Q1 March 2011.

CRISIL is India's leading ratings agency, providing ratings, research, and risk and policy advisory services. The company also provides high-end research to the world's largest banks and leading corporations.

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