Analyst Note| Rajiv Bhatia, CFA |
MSCI announced on Aug. 2 that it will acquire Real Capital Analytics for $950 million. The all-cash deal will be paid for by MSCI's cash on hand, which totaled nearly $2.0 billion at the end of the second quarter. The deal will enhance the firm's offering in the all other private assets segment. In January 2020, MSCI acquired 40% of Burgiss; this deal represents a continuation of investing in its relatively small real estate business. We will maintain our wide moat rating and fair value estimate of $313 per share; we currently regard the shares of MSCI as overvalued.