RiskMetrics Group acquired KLD Research & Analytics for about $10 million in cash, according to Sarah Cohn, RiskMetrics spokeswoman.
KLD is a provider of environmental, social and governance research, indexes and compliance screening for institutional investors.
RiskMetrics, a risk management and corporate governance company that also provides environmental, social and governance research and compliance screening, will absorb KLD into RiskMetrics’ corporate governance unit.
The deal closed Oct. 30.
Peter D. Kinder, KLD president, will become RiskMetrics’ senior strategic adviser. Tim Brennan, COO at KLD, will also be part of RiskMetrics but his position hasn’t been defined yet, Ms. Cohn said in an interview.
RiskMetrics and KLD each have about 50 staffers devoted to ESG work, Ms. Cohn said.
“While the primary reason for the combination is to grow the size and scalability of our sustainability solutions, we do expect some redundancies to occur over the next two to six months as the two companies integrate,” Ms. Cohn said in a statement. “At this point, it is too early to tell the exact number of people impacted.”
With the addition of KLD, RiskMetrics will offer institutional investors more ESG coverage and data and services so investors “can more easily incorporate ESG analytics into their investment processes,” according to a separate RiskMetrics statement.