StatPro acquires ECPI research and index
StatPro Group, the AIM listed provider of cloud-based portfolio analysis and asset pricing services for buyside firms, has acquired the environmental, social and governance (ESG) research and index business unit (ECPI) from ECPI Group.
The acquisition is for a total initial consideration of €0.9 million (£0.8 million) payable in cash from existing debt facilities on completion, which is expected on 1 July 2019.
“We are delighted to be joining StatPro at this exciting stage in our evolution,” says Michele Calcaterra, director at ECPI. “The combination of our expertise in the field of ESG research and index development, combined with StatPro’s expertise in analytics and its broader distribution capability, will allow us to grow our business unit at an even faster rate.”
The deferred contingent consideration (payable in March 2022) is currently estimated to be an additional €2.0 million. This will be calculated based on two times the net increase in accounting rate of return to December 2021, which is capped at €10 million. It will be subjected to a reduced multiple if the earnings before interest, taxes, depreciation, and amortisation (EBIDTA) business unit is less than 20% of the margin.
ECPI provides ESG indices and benchmarks and related services including constructing client specific benchmarks. It carries out ESG research and produces ratings on an active universe of approximately 3,500 companies (total universe of 4,500+) globally and uses these ratings to qualify companies for inclusion into a series of ESG investable indices, or to provide portfolio screening services.
StatPro expects annual revenue levels for the acquired service to remain broadly similar for 2019 and will incorporate ECPI revenues from completion in July 2019.
The group will also take on the employees of ECPI ESG research and index unit in Milan, where they will be integrated with StatPro Italia’s existing operations.