Summary
Moody's Corporation (MCO) announced the completion of its acquisition of Fermat International on October 9, 2008. Fermat International is a significant player in providing risk and performance management software, primarily serving the global banking sector. This strategic acquisition is expected to bolster Moody's Analytics division, enhancing its capabilities in a critical financial technology space. The total consideration for the acquisition is composed of an upfront payment of €132.5 million (approximately $181 million) in cash, with a potential additional payment of up to €25 million (approximately $34 million) contingent upon Fermat achieving specific financial targets by the end of 2008. The company funded this transaction using existing offshore cash reserves, indicating a prudent approach to capital management amidst prevailing market conditions.
Key Highlights
- 1Moody's Corporation completed the acquisition of Fermat International on October 9, 2008.
- 2Fermat International is a provider of risk and performance management software for global banks.
- 3The acquisition is integrated into Moody's Analytics segment.
- 4The initial cash consideration was €132.5 million (approx. $181 million).
- 5An additional performance-based payment of up to €25 million (approx. $34 million) may be made.
- 6The acquisition was funded by offshore cash on hand.
- 7Regulatory approvals for the acquisition have been obtained.