MSCI Expands Portfolio Solutions With Strategic Acquisition Of Wealth Tech Platform Fabric

MSCI Inc. MSCI has agreed to acquire Fabric, a wealth technology platform. The terms of the deal were not disclosed.

Founded in 2019, Fabric provides previously underserved wealth management communities with risk and portfolio design technology. 

The synergies between MSCI's total-portfolio toolkit and Fabric's rules-based portfolio construction capabilities are expected to have a transformative impact.

This collaboration aims to streamline investment processes and create a more interactive experience for wealth managers. It is designed to deliver real-time insights, enhance market transparency, and tailor portfolios to the unique needs of individual investors.

Jorge Mina, MSCI's Head of Analytics, said, "This combination with Fabric will not only enhance our existing content and tools but will also accelerate the development of new strategic functionalities related to rules-based portfolio construction. This transaction underscores MSCI's commitment to expanding its market reach and offering a broader spectrum of solutions to meet the diverse needs of both institutional and individual investors."

MSCI held cash and cash equivalents of $928.6 million as of September 30, 2023.

The company expects the transaction's financial impact not to be material and to close the deal next quarter, subject to customary closing conditions.

Price Action: MCSI shares are trading higher by 1.28% at $549.48 on the last check Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was Reviewed And Published By Benzinga Editors.