MSCI Inc. completes acquisition of Foxberry to enhance index innovation

MSCI Inc. (NYSE: MSCI), a prominent provider of critical decision support tools and services for the global investment community, has announced the completion of its acquisition of Foxberry, a London-based innovator in front-office index technology for investors. This acquisition, first announced on February 7, 2024, marks a significant step in MSCI’s strategy to deepen its index customization offerings and deliver more client-centric solutions.

The integration of Foxberry’s advanced foxf9 platform into MSCI’s suite enhances the company’s capabilities in index construction, risk modeling, and strategic investment solution delivery. Foxberry’s platform is renowned for its hyper-customization, extensive back-testing, simulation capabilities, and incorporation of sustainability criteria. “This acquisition marks the opening of new pathways to index innovation and more client-centric solutions,” said Jana Haines, Head of Index at MSCI. “We look forward to the next phase of our journey, focused on our commitment to developing and enhancing our customized portfolio solutions for investors globally.”

The merger is poised to provide MSCI with a robust set of tools that will improve feedback loops for clients in all areas related to index research and development. “Investors face the challenge of balancing competing investment objectives. This acquisition will allow MSCI to better meet demand for customized portfolios that reflect unique views and meet specific outcomes,” Haines added. The deal will enable MSCI to offer a more interactive client experience, facilitating client ideation through advanced simulation and analysis, and introducing features that cater to diverse investment strategies.

Henrik Brunlid, Co-founder and CEO of Foxberry, expressed enthusiasm about joining forces with MSCI, emphasizing the opportunity to build the next generation of indexing technology. Peter Fors, Co-founder and CTO of Foxberry, also highlighted the potential for scaling index innovation through the combined strengths of Foxberry’s technology and MSCI’s global data and optimization resources.

While the terms of the transaction were not disclosed, the financial impact is not expected to be material to MSCI. The acquisition is set to close in the second quarter of 2024, pending regulatory approvals and customary closing conditions. Following the merger, Foxberry’s financial results will be incorporated into MSCI’s Index reportable segment, further solidifying MSCI’s leadership in the indexing field.

The acquisition of Foxberry by MSCI is a strategic maneuver that significantly enhances MSCI’s offerings in the index technology space. By integrating Foxberry’s innovative technology and customization capabilities, MSCI not only broadens its service portfolio but also reinforces its commitment to meeting the evolving needs of the global investment community. This partnership is expected to drive forward the development of advanced, tailored investment solutions, setting a new standard in the industry for client engagement and personalized investment strategies.