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Crisil to renew analytics focus

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Mumbai: Crisil, the local unit of S-P, is accelerating its analytics and other service offerings amid a slowdown in its key rating business and regulatory overhang, CEO Ashu Suyash said in an interview. In December, it acquired US-based Greenwich Associates for nearly $40 million, which will help it raise the data analytics offering to Indian financial services.

Suyash said the acquisition will help the company add new products to its research and analytics business, and diversify away from the credit ratings business.

The services Greenwich offers can also be introduced to the Indian market in the future. “Today, 70 per cent of Crisil’s revenues come from outside, that ratio will increase.

It is a great addition for our company and will compliment the Coalition acquisition we did in 2012.

Coalition was doing benchmarking analytics for only the corporate and investment banking.

Greenwich is across the financial sector, including asset management and wealth management,” Suyash said.

In 2012, Crisil had acquired UK-based Coalition Development, which provided highend analytics mainly to leading global investment banks, for Rs 250 crore.

For Greenwich, the company will pay $40 million, out of which $34 million is to be paid upfront and the balance on achieving some revenue milestones.

Crisil has signed a definitive agreement and expects to close the deal by the first quarter of fiscal 2021.

The market for benchmark analytics in India is still at a nascent stage but Crisil hopes that they can introduce these products in the country in the next couple of years.

“The Indian market needs to evolve because we don’t see that kind of sharp approach for the investment banking side.

So, in the first two years, they will work for clients outside India.

Greenwich works with over 300 clients whereas today our global client list is 50 to 75, so we have the ability to sell a lot of other products to those clients.

Its topline is about $46 million and it will add to our earnings per share (EPS) in 12 to 18 months,” Suyash said.




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