Financial data and analytics company FactSet Research Systems is acquiring ESG data provider Truvalue Labs Inc., the companies announced Tuesday.
Truvalue Labs applies artificial intelligence-driven technology to more than 19,000 public and private companies to generate ESG scores on positive and negative ESG behavior. Truvalue Labs data are mapped against Sustainability Accounting Standards Board standards and United Nations Sustainable Development Goals, allowing investors to evaluate ESG risk factors.
The transaction is expected to close later this year.
"Truvalue Labs provides detailed and actionable ESG scores backed by a credible body of academics," FactSet CEO Phil Snow said in a statement. With ESG funds seeing record inflows, the acquisition "will yield compelling results for both firms and our joint client bases," he said.
Truvalue Labs joined the Open:FactSet Marketplace in 2018, which means that its data is already integrated for use with current FactSet content and products.
Truvalue Labs CEO and co-founder Hendrik Bartel said in the same statement that the combined client base, distribution, content and technology platforms will amplify the actionable ESG insights available to the investment community.