Markit Group Ltd. of London, U.K., is acquiring Toronto-based Prism Valuation Corp., in a move that will expand the British financial information firm’s coverage of over-the-counter (OTC) derivatives and structured OTC products.
Prism Valuation, founded in 2006, provides independent valuations and risk analysis services for OTC derivatives and structured products to financial institutions. Its clients include banks, custodians, asset managers and issuers of structured notes.
“We’re very excited to welcome Prism Valuation’s extensive expertise with complex OTC products, giving us exceptional valuation capabilities across the full spectrum of asset classes,” says Adam Kansler, co-head of Markit’s information division, through a statement released Monday.
Prism Valuation will be integrated into Markit’s portfolio valuations service within the firm’s information division once the acquisition is completed.
“Markit’s scale and global reach will allow us to better support our customers and will also accelerate innovation and further development of our platform,” says Keldon Drudge, founder and CEO of Prism Valuation, in a statement. “Our shared focus on providing independent, high quality valuations will help firms comply with evolving regulatory requirements and satisfy investors’ risk management demands.”
The acquisition is expected to close in the coming weeks. Financial terms were not disclosed.
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