MSCI Inc. and RiskMetrics Group jointly announced that they have entered into a definitive merger agreement whereby MSCI will acquire RiskMetrics in a cash and stock transaction valued at $21.75 per share based on MSCI’s closing price of $29.98 per share on Friday, February 26, 2010, or approximately $1.55 billion.

The transaction will unitinvestment decision support tools to financial institutions worldwide. The combined company would have approximately $750 million of revenues and approximately 2,000 employees across 20 countries.

The transaction is currently expected to close in MSCI’s third fiscal quarter of 2010.

“This deal marks a significant milestone in our effort to become the leading provider of investment decision support tools,” said Henry Fernandez, Chairman and CEO, MSCI Inc. “The combined scale, complementary product capabilities and clients and extensive geographic footprint of MSCI and RiskMetrics will drive significant cost-saving synergies and revenue opportunities. RiskMetrics is the perfect match for MSCI and we are very excited to welcome them to the MSCI family.”

“One of the key trends that has been driving the growth of our analytics business is the increased need to understand, measure, manage, and report risk. The combination of MSCI’s expertise in portfolio equity risk models and analytics, and RiskMetrics’ powerful multi-asset class risk management platform creates a comprehensive, best of breed
portfolio risk management offering, which will provide our clients with a seamless view of risk across the front and middle office,” added Mr. Fernandez.

“This is a truly powerful combination. This transaction with MSCI will benefit our investors, clients and employees,” said Ethan Berman, Chief Executive Officer of RiskMetrics Group. “Managing risk is critically important in today’s financial markets. Our clients will greatly benefit from the combined company’s expanded product range and
enhanced risk management offerings.”