Moody's to acquire credit risk management tech firm.Moody's (New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of ) has agreed to acquire KMV KMV Keyboard/Mouse/Video KMV Kealhofer, McQuown and Vasicek (founders of a company and measure of default probability) KMV Key Mediating Variable (marketing) (San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden , CA), a credit risk management technology firm, from management and the company's founders for $210 million in cash. Moody's said it expects the deal to close by the end of the second quarter. KMV expects 2002 revenues of $60 million with an approximate 10% pre-tax cash flow margin. It products are targeted to large financial institutions, as well as banks, insurance companies, and money managers. Moody's said the purchase will expand its current credit risk management services (MRMS MRMS Mountain Ridge Middle School (Colorado) MRMS Mission Ready Management Solutions (Rolls-Royce) MRMS Maintenance Resource Management System (Navy) ) business and will complement its capital markets credit rating business, Moody's Investor Services. Combined, KMV and MRMS revenues would be about $100 million. Their combined services will allow clients to assess the risk associated with their credit exposure at the portfolio level. Moody's expects the merged business to generate revenues of $200 million by the end of 2005. |
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