MSCI acquires real estate data, index firm

MSCI Ltd. is buying IPD Group, a real estate data provider and index sponsor, for about $125 million.

“The addition of IPD to the MSCI family will enable us to expand our multiasset-class offering by integrating private real estate assets into our performance and risk models, and by adding real estate market performance benchmarks to our family of market leading indices,” Henry Fernandez, chairman and CEO of MSCI Inc., parent of MSCI Ltd., wrote in letter to clients.

Simon Fairchild, managing director, IPD North America confirmed the transaction in an e-mail.

MSCI’s plan is to expand IPD’s global footprint — especially in Asia and the U.S. — said C.D. Baer Pettit, managing director and head of MSCI’s index business unit in an e-mail.

IPD co-founders, Ian Cullen and Rupert Nabarro, will act as senior advisers to the business, Mr. Pettit said.

IPD’s revenue was $26.4 million for the six months ended June 30 and $47.7 million for the year ended Dec. 31, 2011, according to a joint news release. The addition of IPD is not expected to materially affect MSCI’s results of operations for fiscal year 2012, which ends Dec. 31. The deal is expected to close during the fourth quarter of this year.