S&P Global (SPGI) is close to reaching an agreement to acquire the research platform Visible Alpha, a deal that could push its valuation over $500 million, according to the Financial Times.
Launched in 2015 by a consortium including leading investment banks such as Morgan Stanley, Goldman Sachs, Bank of America, Jefferies, and UBS, Visible Alpha has seen substantial growth since then. The research platform generated roughly $100 million in revenue last year from sales to both buy-side investors and corporate clients.
The platform boasts contributions from around 200 financial institutions.
The S&P Global’s final purchase price will depend on performance targets, the report says.
For the investment banks, the deal would mark a successful exit for a business they launched nine years ago aimed at better monetizing their research and data, with agreements in place to continue supplying their insights post-acquisition.
SPGI shares climbed 0.3% in premarket trading Tuesday.