mergers and acquisitions

U.S. proxy advisory firm Institutional Shareholder Services Inc. (ISS) announced on Wednesday that it’s acquiring New York-based investment industry research firm Strategic Insight Inc., the parent company of Canadian industry research firm Investor Economics.

The transaction is partly an internal reorganization as both ISS and Strategic Insight are owned by San Francisco-based private equity firm Genstar Capital.

Toronto-based Investor Economics, which provides research and data on the Canadian investment-management industry, was acquired by Strategic Insight’s predecessor, Asset International Inc., in 2013. Asset International was itself acquired by Genstar in 2014; and, in 2016, rebranded as Strategic Insight. Genstar then acquired ISS in 2017 for US$720 million.

“ISS’s acquisition of Strategic Insight will greatly benefit institutional and retail investors who increasingly rely on proprietary data and analytical tools to identify investment opportunities and to compete effectively in a rapidly changing marketplace,” said Tony Salewski, managing director of Genstar Capital, in a statement. “We are pleased to help facilitate this transaction of two Genstar portfolio companies to create a scale, market-leader within the financial services industry.”

The terms of the transaction were not announced. The deal is expected to close in the first quarter, subject to certain closing conditions. ISS says that Strategic Insight’s data sets will enhance its data intelligence arm, ISS Analytics.

“This acquisition underscores our continued commitment to assist investment professionals not only through a rapidly growing suite of solutions and services, but also through a deep repository of data and analytics,” said Gary Retelny, president and CEO of ISS, in a statement. “As we have done for more than three decades, ISS will continue to expand our core governance, analytics and ESG solutions for investment management and front-office professionals.”

“The acquisition of Strategic Insight is timely and will enable our firm to accelerate new product offerings,” added Joel Mandelbaum, president and CEO of Strategic Insight, in a statement. “Our clients and staff will benefit from ISS’ tradition of innovation, scale, and global brand recognition.”