Mubasher: Moody’s Corporation signed an agreement to acquire the leading provider of anti-money laundering (AML) and know-your-customer (KYC) data and due diligence services Regulatory DataCorp (RDC) for $700 million.
The deal follows Moody’s acquisition of data provider Bureau van Dijk (BvD) in 2017, boosting “BvD’s information portfolio and analytical capabilities by adding RDC’s unique, comprehensive dataset,” according to a statement on Thursday.
Moreover, the agreement will also enable RDC to expand its global presence to a wider range of financial institutions, insurance firms, corporations, and government entities served by Moody’s Analytics and BvD.
“RDC’s comprehensive data and leading technology are at the forefront of the global effort to identify sources of counterparty risk and to prevent criminal infiltration of the financial system,” executive director of the Bureau van Dijk division of Moody's Analytics, Dan Russell, said.
“The addition of RDC’s proprietary data and technology to BvD’s comprehensive company information offerings provides an industry-leading platform that will help customers make better informed decisions as they manage AML and KYC risks and requirements,” he remarked.
Forecast to be complete in the first quarter of 2020, the transaction will be funded with cash on hand, commercial paper, and debt financing.
The acquisition of RDC, currently owned by Vista Equity Partners (Vista), is expected to generate about $55 million of annualised revenue in 2020, according to Moody’s.
“Moody’s anticipates share repurchases for 2020 to total approximately $1.3 billion, subject to available cash, market conditions and other ongoing capital allocation decisions. Share repurchases during 2019 totaled approximately $1.0 billion.”
UBS Investment Bank acted as exclusive financial advisor on the deal.