BARRA signed a definitive agreement to buy RogersCasey & Associates for 540,000 shares of BARRA common stock, worth about $17 million as of the Nasdaq market close yesterday.
Kamal Duggirala, president of BARRA, said the plan sponsor services area will be run separately from the areas servicing money managers, who are subject to scrutiny by consultants.
Co-founders and primary owners Stephen Rogers, chairman, and John Casey, president and chief executive, will remain after the merger. In addition, Mr. Casey will become a member of BARRA's board of directors. Andrew Rudd will continue as chairman and chief executive of BARRA; Mr. Duggirala will remain as president.
No layoffs will result and jobs likely will be added because of the merger, Mr. Duggirala said. There are 22 employee owners of RogersCasey, though the majority is owned by Mr. Rogers and Mr. Casey. The deal is subject to unspecified conditions, and is structured as an exchange of stock, with RogersCasey becoming a wholly owned subsidiary of BARRA.
The deal ends months of speculation on the fate of RogersCasey. Sources previously named State Street Bank as a possible buyer.
Talks between the two companies were initiated in February.
