Factset Research Systems Inc. · NYSE:FDS
Factset Research Systems — Merger or Acquisition (January 2022)
17 slides from Factset Research Systems's merger presentation, Jan 5, 2022
Slide 1: FactSet to Acquire CUSIP Global Services ("CGS")
Copyright © 2022 FactSet Research Systems Inc. All rights reserved. January 5, 2022 FactSet to Acquire CUSIP Global Services (“CGS”)
Slide 2: Forward-Looking Statements and Non-GAAP Measures
Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Forward-Looking Statements and Non-GAAP Measures This presentation contains forward-looking statements based on management's current expectations, assumptions, estimates, forecasts and projections, as of the date such statements are
Slide 3: Today's Speakers
Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Jonathan Reeve EVP, Head of Content & Technology Solutions Today’s Speakers Linda S. Huber EVP, Chief Financial Officer 3 Philip Snow Chief Executive Officer
Slide 4: Acquisition to significantly expand FactSet's critical role in the global capital markets
Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Acquisition to significantly expand FactSet’s critical role in the global capital markets • Purchase price of $1.925 billion • FactSet expects to receive an estimated tax benefit of approximately $200 million 1 • Transaction to be f
Slide 5: CGS is the operator of market standard security identifiers for more than 50 years
Copyright © 2022 FactSet Research Systems Inc. All rights reserved. CGS is the operator of market standard security identifies for more than 50 years CGS Overview CGS Has Deep Industry Alliances CGS Offers Three Core Types of Identifiers CUSIP Committee on Uniform Security Identification Procedures
Slide 6: Expanding breadth and depth of coverage as new financial instruments are added over time
Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Expanding breadth and depth of coverage as new financial instruments are added over time Equity Debt Other • Common / Ordinary Shares • Preferred Shares • ADRs and GDRs • Exchange Traded Funds • Indices • Limited Partnerships • List
Slide 7: CGS's financial profile features robust margins and consistent revenue growth rates
Copyright © 2022 FactSet Research Systems Inc. All rights reserved. 6% 19% 75% 17% 8% 10% 13% 19% 33% CGS’s financial profile features robust margins and consistent revenue growth rates Summary Financial Metrics Business Mix (% of 2020 ASV 1) By Segment Americas EMEA APAC Investment Managers Investm
Slide 8: FactSet strategy: Purpose, Client Obsession, Content Refinery, Next Generation Workflows
Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Purpose: Drive the investment community to see more, think bigger, and do its best work Client Obsession: Provide open, flexible, adaptive, solutions as part of our open ecosystem with hyper- personalized digital products to provide
Slide 9: FactSet content refinery and open content platform
Copyright © 2022 FactSet Research Systems Inc. All rights reserved. 20% • Listings • Securities • Entities • People • Transactions • Relationships • ESG • Prices • Performance FactSet Proprietary Content • Concordance to FactSet permanent entity identifiers • Consolidated contractual process • Sandb
Slide 10: CGS is a natural extension of FactSet's content refinery
Copyright © 2022 FactSet Research Systems Inc. All rights reserved. CGS is a natural extension of FactSet’s content refinery FactSet’s Data Management Solutions (Today) • Security- and entity-level symbology • Comprehensive entity reference data • Unify disparate sources of information • Expose dire
Slide 11: CGS scales FactSet CTS to more than $425M ASV
Copyright © 2022 FactSet Research Systems Inc. All rights reserved. CGS scales FactSet CTS to more than $425M ASV 1 • Enhance CTS value proposition across multiple buy-side and sell-side end markets • Highly complementary to DMS and RBICs solutions, furthering impact across industry • CGS has meanin
Slide 12: CGS acquisition is aligned with FactSet's longer-term capital structure optimization
Copyright © 2022 FactSet Research Systems Inc. All rights reserved. CGS acquisition is aligned with FactSet’s longer-term capital structure optimization • FactSet is committed to optimizing its longer-term capital structure • Opportunity to accelerate optimization plan by funding the “right” deal -
Slide 13: FactSet has secured $2 billion in committed financing to fund the CGS acquisition
Copyright © 2022 FactSet Research Systems Inc. All rights reserved. FactSet has secured $2 billion in committed financing to fund the CGS acquisition at closing • Purchase price funded through combination of new debt and cash on hand • Commitment in place for $2 billion loan facility from PNC Bank a
Slide 14: FactSet contemplating inaugural bond issuance
Copyright © 2022 FactSet Research Systems Inc. All rights reserved. • FactSet to pursue credit ratings in conjunction with potential bond issuance - Shelf-registration statement (Form S-3) filed on Tuesday, January 4 - Rating agency meetings to be scheduled during January - Considering bond issuance
Slide 15: We maintain a balanced approach to capital allocation
Copyright © 2022 FactSet Research Systems Inc. All rights reserved. We maintain a balanced approach to capital allocation 15 Investment in growth and return of capital Capital Allocation Philosophy • Capital to re-invest in capabilities and product innovation • Creating long-term value for sharehold
Slide 16: Key Takeaways
Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Key Takeaways • FactSet’s strategy remains unchanged; this acquisition reflects our continued commitment to invest in our clients’ content and workflow needs • Experienced leadership at FactSet and CGS to further CGS’s unique market
Slide 17: Questions & Answers
Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Questions & Answers
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