With more than a century of experience in the financial markets, Moody's Corporation is a reference in its sector. The group has a strong international presence and local expertise. Despite all this, the company is always looking to expand in order to better meet the needs of its customers. To this end, it has announced an agreement to acquire the Cortera Group. With this acquisition, the global risk assessment company has given a new impetus to its development.
Moody's Corporation continues to adopt a successful strategy to expand its capital. As part of this strategy, the company has been approaching Cortera, a leading North American provider of workflow and credit data solutions, for some time with a view to a potential acquisition.
The credit rating group has finally been able to achieve its goal. Indeed, Moody's announced that it has reached a definitive agreement with Cortera for its acquisition. This acquisition will help to strengthen the company's integrated risk assessment capabilities.
Through this acquisition, the global risk assessment company will significantly expand its presence in the small and medium-sized enterprise (SME) community. In addition, the acquisition is expected to close in the first quarter of 2021. It will be subject to customary closing conditions.
In addition, Moody's is expected to use available cash to fund the transaction. However, this should not have a significant impact on the company's financial results for the year 2021.
Founded in 1993 and based in Florida, USA, Cortera specializes in providing credit information on companies and corporations. It has under its management one of the largest credit information databases. This includes data and analysis on more than 36 million companies.
To collect this information, Cortera relies on thousands of sources. It then uses artificial intelligence to optimize the information. The firm offers companies analysis, reporting and monitoring services. Its goal is to help companies make informed decisions about their counterparts.
With the acquisition of Cortera, Moody's Corporation has new development opportunities. In particular, the acquisition will enable Moody's to complete its extensive Orbis database. The latter includes information on private companies.
In addition, by acquiring Cortera, the global risk assessment company will be able to optimize its customer knowledge, commercial lending and supply chain solutions. Jim Swift, CEO of Cortera, said the acquisition will be very beneficial for the quality and reliability of data provided to clients.
He believes that customers will now be able to benefit from more in-depth information. The combination of Moody's capabilities and Cortera's reliable data and analysis on private US companies should help to achieve this, he said.
In addition, the acquisition of Cortera will help Moody's Corporation significantly expand its reach and capabilities. The company will have the opportunity to respond favourably to the ever-changing needs of its customers.