Moody’s to Sell Moody’s Analytics Knowledge Services Business

Moody’s Corporation (NYSE:MCO) announced today that it has agreed to sell its Moody’s Analytics’ Knowledge Services (MAKS) business to Equistone Partners Europe Limited (Equistone), a European private equity firm.

MAKS is a leader in knowledge process outsourcing services, providing high-value research and analytical support to organizations worldwide. Through delivery centers in India, Costa Rica, Sri Lanka and China, the business serves over 250 banks, asset managers and consulting firms with more than 2,500 subject matter experts working as an extension of its clients’ teams.

“We are confident that Equistone will be a strong partner for the MAKS business and its customers,” said Mark Almeida, President of Moody’s Analytics. “Equistone provides a platform to support the growth of the business and its continued evolution as a technology-enabled provider of high-quality, cost effective services to global enterprises.”

The transaction is expected to close later this year, subject to customary closing conditions. It is expected to be dilutive to Moody’s EPS on a GAAP basis in full-year 2019 by up to $0.20 per share, mainly due to certain non-recurring charges associated with the transaction, which will be finalized at closing. On an adjusted EPS basis, excluding the aforementioned non-recurring charges, the impact to full-year 2019 results will be negligible. It is anticipated that sale proceeds and repatriated offshore cash will be used to repurchase approximately $300 million of Moody’s outstanding stock.

Moody’s was advised on this transaction by Centerview Partners and Slaughter and May.

About Moody’s Corporation
Moody's is an essential component of the global capital markets, providing credit ratings, research, tools and analysis that contribute to transparent and integrated financial markets. Moody’s Corporation (NYSE:MCO) is the parent company of Moody's Investors Service, which provides credit ratings and research covering debt instruments and securities, and Moody's Analytics, which offers leading-edge software, advisory services and research for credit and economic analysis and financial risk management. The corporation, which reported revenue of $4.4 billion in 2018, employs approximately 13,200 people worldwide and maintains a presence in 42 countries. Further information is available at www.moodys.com.