In a further move towards consolidation in the ESG research space, The Corporate Library and GovernanceMetrics International (GMI) announced yesterday they have merged, uniting two global corporate governance research and risk rating firms.
In other recent M&A activity in this space, MSCI announced that it would acquire RiskMetrics. Please see this recent article for a review of mergers and acquisitions in the research industry during the first half of 2010.
This merger between GMI and The Corporate Library creates one of the largest independent firms dedicated to the development and sale of corporate governance risk ratings; environmental, social and corporate governance (ESG) advisory and analytical services; and a suite of online global governance information products and services for the investment market.
The combination of The Corporate Library and GMI will provide coverage of a universe of more than 5,400 companies, including the largest North American public companies; the MSCI World and MSCI EAFE Indices; and industrialized Asia-Pacific, industrialized European and emerging markets. Since 1999, The Corporate Library has been providing U.S. corporate governance research, advisory and risk analysis solutions. GMI has been a provider of investment-focused corporate governance research and ratings for global corporations since the firm’s launch in 2002.
“The merger of The Corporate Library and GMI fills a void in the investment and insurance markets for a global corporate governance research and ratings resource by uniting two pioneering enterprises, both widely recognized for their intellectual leadership,” said Richard A. Bennett, CEO and President of both The Corporate Library and now the combined entity.
“The financial crisis has catapulted ESG information on public companies into the spotlight,” said Nell Minow, Editor and Co-Founder of The Corporate Library. “As a combined entity, The Corporate Library and GMI provide a unique suite of services and products to meet the global ESG risk analysis needs of investment professionals and other stakeholders.”
Howard Sherman, recent CEO of GMI, has become Executive Director and Head of Global Business Development of the combined entity. Gavin Anderson, recent chairman and former CEO of GMI, will join the board of the new firm and continues to play a role in its business development. In creating the new firm’s board of directors, Mr. Sherman and Mr. Anderson join with The Corporate Library’s board, including Richard A. Bennett, John Higgins, Ric Marshall and renowned governance pioneers Nell Minow and Robert A. G. Monks. GMI Research Director John Jarrett will now take on the added role of Chief Operating Officer for the GMI unit.
The combined entity has no immediate plans to change either of the prior companies’ systems or products. Over the coming months, the new firm will explore potential opportunities for integrated services and products driven by market demand. As a combined firm, The Corporate Library and GMI will continue to operate principally from New York City and Portland, Maine, and the unique corporate brands of both firms will remain intact.
The combined company’s clients include institutional investors, money managers, insurance underwriters, investment banks, major accountancies, search firms, law firms, academic institutions, credit rating agencies, corporations and consultancies.
For more information about the merger between The Corporate Library and GMI, please visit www.thecorporatelibrary.com and read the “Frequently Asked Questions.”