Xinhua Finance, China's premier financial services and media company, announced today it has reached an agreement to acquire Mergent, Inc., a leading provider of global business and financial information on publicly traded equity and debt. The transaction will enable Xinhua Finance to incorporate Mergent's range of research tools and data into its ratings service, Xinhua Far East China Ratings, adding to the depth of information available to investors in China and abroad.
Tracing its history to its foundation in 1900, originally part of Moody's, the credit rating agency, Mergent offers a wide variety of business and financial products, from online corporate events data and bond pricing to transparent access to standardized equity information and common stock handbooks. Among the benefits from the acquisition, Xinhua Finance will utilize Mergent's established database technology to strengthen the accessibility of its corporate database. Currently, Xinhua Finance houses the largest corporate database in China. Incorporating Mergent's database technology and "dividend achiever" index will be complementary to the development of a private sector bond market, which is in the process of being deregulated in China.
Further, Mergent's approach to developing industry, dividend and bond reporting standards will provide researchers at Xinhua Finance with a template for developing materials that conform to the global investor community. As Xinhua Finance extends its business around the world, the company will continue to evolve its products and services to meet global standards for governance and transparency.
"Today's announcement is an historic moment for one company steeped in history and another in the process of making history," said Fredy Bush, Vice Chairman and CEO of Xinhua Finance. "The union of Xinhua Finance and Mergent will create a global provider of fixed-income information about companies in China, the US and Europe."
The acquisition also offers an opportunity for each company to use its respective geographic assets to deliver strategic business benefits to both corporations. Mergent's deep client base in the US and Europe, and its reputation for delivering high-value information, will serve to bolster Xinhua Finance's position as a pre-eminent provider of financial news and services to investors around the world. For Mergent, Xinhua Finance's leadership position in China immediately strengthens Mergent's status within its industry and amongst its competitors by providing a multitude of channels, particularly in Asia, to market its products and research reports.
"We are very excited to join the Xinhua Finance family," stated Jonathan Worrall, CEO of Mergent, Inc., "who provides a unique access to China's financial markets." Mr. Worrall added, "As East and West move closer together, and the word 'global' becomes less jargon and more reality, it will be crucial for us to add China elements into our services and products. The combination of Xinhua Finance and Mergent provides investors a one-stop source for transparent information, including indices and analyses on corporations in the US, Europe and China, the world's most important market."
In a closing statement, Ms. Bush remarked, "As China's economy continues to mature, there will be an even greater demand for more thorough and detailed data on China's leading businesses and industries. Xinhua Finance and Mergent now offer the synergies and expertise to meet this need."