Moody's Concludes RMS Acquisition

Moody's Corporation (MCO) on Wednesday said it completed its acquisition of RMS, a provider of climate and natural disaster risk modeling and analytics. The companies had on August 5 announced the deal valued at approximately $2.0 billion.

With over 400 risk models covering 120 countries, RMS is a global provider of climate and natural disaster risk modeling serving the global property and casualty (P&C) insurance and reinsurance industries. For the fiscal year ending September 30, 2021, RMS is expected to generate revenue of approximately $320 million and adjusted operating income of approximately $55 million.

The acquisition expands Moody's insurance data and analytics business and accelerates the development of the company's global integrated risk capabilities to address the next generation of risk assessment.

As part of the Moody's Analytics platform, RMS is expected to generate up to $150 million of incremental run-rate revenue by 2025. On a U.S. GAAP basis, the acquisition is expected to add to Moody's earnings in 2025. And, excluding purchase price amortization, it is expected to be accretive to adjusted diluted EPS in 2024.

Shares of Moody's Corporation are currently trading in pre-market at $379.00, down $1.15 or 0.30 percent from previous close.

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