StatPro Group PLC (LON:SOG) has strengthened its index and benchmarks offering in the growing area of environmental, social and governance (ESG) with a €2.9mln (£2.6mln) acquisition on Wednesday.
The AIM-listed company, which provides cloud-based portfolio services for the asset management industry, snapped up the ESG research and index business unit ECPI from Italy’s ECPI Group Srl for an initial €0.9mln cash consideration, with another sum payable in March 2022.
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Payment of the initial sum will come from StatPro’s recently expanded debt facilities, while the amount of the second sum will be based on two times the net increase in annualised recurring revenue to December 2021, capped at €10mln and subject to a reduced multiple if the underlying earnings (EBITDA) of ECPI is less than 20% margin. It is currently estimated to be an additional €2.0mln.
StatPro, which will integrate the ECPI research and index staff into its existing operations in Milan, said it expects the new addition to enhance group adjusted earnings per share in the first full year following acquisition.
With the new offering adding to its ‘Source:’ benchmark products, StatPro said there has been growing demand for ESG ratings and indices, with ECPI also constructing client-specific benchmarks and carrying out research and producing ratings around 3,500 companies globally.
StatPro chief executive Justin Wheatley said: “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.”