Moody's Buys RMS for $2B

TL;DR

Moody's is buying RMS for $2B to boost its climate risk analytics.

AI Summary

Moody's Corporation (MCO) announced on July 29, 2024, that it has entered into a definitive agreement to acquire RMS, a leading provider of climate and nat cat modeling solutions, from Daily Mail and General Trust plc. The acquisition is valued at approximately $2.0 billion, with $1.75 billion in cash and $250 million in Moody's common stock. The transaction is expected to close in the fourth quarter of 2024, subject to customary closing conditions.

Why It Matters

This acquisition significantly expands Moody's capabilities in climate risk analytics, a growing area of concern for investors and regulators, potentially enhancing its data and analytics offerings.

Risk Assessment

Risk Level: medium — The acquisition involves a significant cash outlay and stock issuance, and its success depends on integration and market reception of the combined entity's offerings.

Key Numbers

• $2.0B — Acquisition Value (Total price for RMS)
• $1.75B — Cash Consideration (Part of the acquisition payment)
• $250M — Stock Consideration (Part of the acquisition payment)

Key Players & Entities

• Moody's Corporation (company) — Acquiring company
• RMS (company) — Acquired company
• Daily Mail and General Trust plc (company) — Seller of RMS
• $2.0 billion (dollar_amount) — Total acquisition value
• $1.75 billion (dollar_amount) — Cash portion of acquisition
• $250 million (dollar_amount) — Stock portion of acquisition
• July 29, 2024 (date) — Date of definitive agreement
• fourth quarter of 2024 (date) — Expected closing period

FAQ

From the Filing

0001193125-24-189191.txt : 20240731 0001193125-24-189191.hdr.sgml : 20240731 20240730212604 ACCESSION NUMBER: 0001193125-24-189191 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 15 CONFORMED PERIOD OF REPORT: 20240729 ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20240731 DATE AS OF CHANGE: 20240730 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MOODYS CORP /DE/ CENTRAL INDEX KEY: 0001059556 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-CONSUMER CREDIT REPORTING, COLLECTION AGENCIES [7320] ORGANIZATION NAME: 07 Trade & Services IRS NUMBER: 133998945 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-14037 FILM NUMBER: 241159630 BUSINESS ADDRESS: STREET 1: 7 WORLD TRADE CENTER STREET 2: AT 250 GREENWICH STREET CITY: NEW YORK STATE: NY ZIP: 10007 BUSINESS PHONE: 2125530300 MAIL ADDRESS: STREET 1: 7 WORLD TRADE CENTER STREET 2: AT 250 GREENWICH STREET CITY: NEW YORK STATE: NY ZIP: 10007 FORMER COMPANY: FORMER CONFORMED NAME: DUN & BRADSTREET CORP /DE/ DATE OF NAME CHANGE: 19980728 FORMER COMPANY: FORMER CONFORMED NAME: NEW DUN & BRADSTREET CORP DATE OF NAME CHANGE: 19980728 8-K 1 d879102d8k.htm 8-K 8-K MOODYS CORP /DE/ false 0001059556 0001059556 2024-07-29 2024-07-29 0001059556 us-gaap:CommonStockMember 2024-07-29 2024-07-29 0001059556 mco:TwoThousandAndFifteenSeniorNotesDueTwoThousandAndTwentySevenMember 2024-07-29 2024-07-29 0001059556 mco:A950SeniorNotesDueTwoThousandAndThirtyMember 2024-07-29 2024-07-29     UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549     FORM 8-K     CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): July 29, 2024     MOODY’S CORPORATION (Exact Name of Registrant as Specified in Charter)       Delaware   1-14037   13-3998945 (State or Other Jurisdiction of Incorporation)   (Commission File Number)   (IRS Employer Identification No.) 7 World Trade Center at 250 Greenwich Street New York , New York 10007 (Address of Principal Executive Offices) (Zip Code) Registrant’s telephone number, including area code: (212) 553-0300     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:   ☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)   ☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)   ☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))   ☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Act:   Title of each class   Trading Symbol(s)   Name of each exchange on which registered Common Stock, par value $0.01 per share   MCO   New York Stock Exchange 1.75% Senior Notes Due 2027   MCO 27   New York Stock Exchange 0.950% Senior Notes Due 2030   MCO 30   New York Stock Exchange Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐       TABLE OF CONTENTS   ITEM 8.01   OTHER EVENTS      3   ITEM 9.01   FINANCIAL STATEMENTS A