Moody's To Acquire RMS From Daily Mail And General Trust; Updates Guidance

Moody's Corp. (MCO) has agreed to acquire Risk Management Solutions, Inc. or RMS for approximately $2.0 billion from Daily Mail and General Trust plc (DMGT.L). RMS is a provider of climate and natural disaster risk modeling serving the global property and casualty insurance and reinsurance industries.

For the fiscal year ending September 30, 2021, RMS is projected to generate revenue of approximately $320 million and adjusted operating income of approximately $55 million. On a U.S. GAAP basis, the acquisition is estimated to be accretive to Moody's EPS in 2025 and, excluding purchase price amortization, to be accretive to adjusted EPS in 2024.

Moody's has revised its guidance for 2021. Share repurchases are now expected to be approximately $750 million. Full year EPS is now projected to be in the range of $10.90 to $11.20. Adjusted EPS outlook remains in the range of $11.55 to $11.852.

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