StatPro Group plc (AIM:SOG, “StatPro”, “the Group”), the AIM listed provider of cloud-based portfolio analysis and asset pricing services for the global asset management industry, has acquired the environmental, social and governance (“ESG”) research and index business unit (“ECPI”) from ECPI Group Srl for a total estimated consideration (included deferred contingent consideration) of €2.9 million (£2.6 million) in cash.
ECPI has annualised recurring revenues of approximately €0.9 million (£0.8 million) and generated €0.3 million (£0.2 million) EBITDA in 2018
Expected to enhance Group adjusted EPS in the first full year following acquisition
Enhances Source: StatPro’s benchmark offerings with growing demand for ESG ratings and indices
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.
The consideration for the acquisition comprises:
initial cash consideration of €0.9 million (£0.8 million) payable in cash from existing debt facilities on completion (expected 1 July 2019)
deferred contingent consideration (payable in March 2022) currently estimated to be an additional €2.0 million
deferred contingent consideration is calculated based on two times the net increase in ARR to December 2021, is capped at €10 million and subject to a reduced multiple if the EBITDA of the business unit is less than 20% margin.
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.
StatPro will take on the employees of ECPI ESG research and index Unit in Milan, where they will be integrated with StatPro Italia’s existing operations.
Michele Calcaterra, Director, ECPI commented:
“We are delighted to be joining StatPro at this exciting stage in our evolution. 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.”
Justin Wheatley, CEO, commented:
“This earnings enhancing acquisition strengthens our Index and Benchmarks offering by Source: StatPro, and provides a comprehensive ESG research and rating capability across our entire data and analytics division.
“The ESG research team is highly regarded and they will continue to develop the sustainable investment solutions that they have been championing for many years.”