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Moody's To Acquire Reis For About $278 Mln In Cash - Quick Facts

Moody's Corp. (MCO) has agreed to acquire all the outstanding shares of Reis, Inc. (REIS) in an all-cash transaction valued at approximately $278 million, the two companies said Thursday. The transaction has been approved by the boards of directors of both companies.

Reis is a provider of U.S. commercial real estate or CRE data. The company providing analysis and forecasts covering 275 metropolitan markets and 7,700 submarkets. It has compiled a rich archive of detailed information on some 18 million properties nationwide.

Moody's noted that the acquisition of Reis will extend its analytics' role as a provider of information and analytics for the U.S. CRE market.

Under the terms of the merger agreement, Moody's will commence a tender offer to acquire all issued and outstanding shares of Reis common stock for $23.00 per share in cash.

The transaction is subject to customary closing conditions and regulatory approvals, including the tender of a majority of the issued and outstanding shares of Reis common stock.

In addition, Moody's has entered into tender and support agreements with certain Reis management stockholders under which they have committed to accept the tender offer and to tender all of their Reis shares, which represent about 18 percent of Reis's issued and outstanding shares.

Following completion of the tender offer, Moody's will acquire all remaining shares of Reis at the same price of $23.00 per share through a second-step merger and Reis will become a wholly-owned subsidiary of Moody's. The closing of the transaction is expected to take place in the fourth quarter of 2018.

Moody's said that the transaction will be funded through a combination of cash on hand and commercial paper.

The company expects the acquisition of Reis to be accretive to earnings per share on a reported basis in 2020. On an adjusted earnings per share basis, which excludes purchase price amortization, the transaction will be accretive in 2019.

Moody's continues to expect share repurchases for 2018 to be about $200 million.

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