RiskMetrics Group is close to making its second major acquisition this year involving environmental, social and governance research by buying KLD Research & Analytics.
Final discussions between the two companies are understood to be taking place and an announcement on a deal is expected shortly.
Spokesmen for both RiskMetrics and KLD declined to comment. However, neither firm would deny that a deal was on the table.
A buyout of KLD would make RiskMetrics the world's largest ESG research house, coming on the heels of RiskMetrics’ February acquisition of Innovest, the SRI research group. RiskMetrics, which was spun out of JPMorgan in 1998, has been rapidly increasing its presence in the responsible investment field in recent years and in 2007 acquired Institutional Shareholder Services, the proxy voting agency.
Hugh Wheelan is the editor of Responsible Investor