RiskMetrics: Taking a bet on an IPO

For some time, RiskMetrics has been a rumored IPO candidate.

And, yesterday, the company indeed filed for a public offering.

No doubt, RiskMetrics is a powerhouse. The company has a broad platform to help measure and quantify risk across asset classes. It is based on nearly a decade of R&D and the databases include information on more than 150,000 issuers that span 200 countries and 220 exchanges. There are approximately 650 clients.

There is also the ISS division, which provides reports, analysis and consulting on corporate governance. In fact, the organization has a major impact on key corporate decisions (such as mergers & acquisitions). There are roughly 2,750 clients.

Oh, and there is also the CFRA segment, which provides forensic accounting services.

Last year, RiskMetrics posted revenues of $204.5 million and EBITDA of $56.9 million. The company sells its services primarily on a subscription basis – and the renewal rate is about 90%.

The lead underwriters include Credit Suisse (NYSE: CS), Goldman Sachs (NYSE: GS), and Banc of America Securities LLC (NYSE: BAC).

You can find the prospectus at the SEC website. Also, if you want to check out more IPOs, click here.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements.