Morgan Stanley has acquired Californian risk management technology vendor Barra for $41 per share in cash, or an aggregate consideration of approximately $816.4 million.
The bank will merge Barra with its Morgan Stanley Capital International (MSCI) division. The transaction is expected to close in 60 to 120 days.
Morgan Stanley says the merger will create a leading global provider of benchmark indices and risk management analytics.
Henry Fernandez, president and CEO of MSCI, comments: "The combination of MSCI's deep understanding of indices across asset classes and Barra's industry leading risk management analytics will provide a powerful platform for enhancing our clients' investment processes within and across asset classes."
Kamal Duggirala, CEO of Barra, adds: "Together, Barra and MSCI can accelerate research and development across asset classes."
Barra reported third quarter net income of $8.7 million on revenue of $38.2 million, both from continuing operations.
The firm employs approximately 500 people and claims more than 8500 paying clients.