McGraw-Hill Acquires QuantHouse - Analyst Blog

By Zacks Equity Research,

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The financial world is ever changing and so are the demands of investors who now want data readily available. This has resulted in fierce competition among companies offering investment tools to grab market share on the basis of superior functionality and investor oriented services.

In view of this, S&P Capital IQ, a unit of The McGraw-Hill Companies Inc. ( MHP ), recently acquired QuantHouse, the provider of market statistics and trading solutions. However, the terms of the transaction were not disclosed.

The acquisition will facilitate investors with access to global exchange pricing, securities valuations and asset analytics, and would also help S&P Capital IQ to create real-time platforms, data base and analytics.

S&P Capital IQ provides a comprehensive research package to its buy-side clients. The package not only includes fundamental and quantitative research and analysis solutions but also covers equity and market research reports and earnings estimates with valuation models from leading brokers. Capital IQ serves investment banks, hedge funds, private-equity firms, and provides complete financial tools to mutual funds and asset managers.

The acquisition of QuantHouse strengthens S&P Capital IQ's position in the market, where it competes with Thomson Reuters Corporation ( TRI ), FactSet Research Systems Inc. ( FDS ) and Bloomberg.

In the recent past, S&P Capital IQ acquired R2 Financial Technologies that offers risk and scenario-based analytics across different asset classes to investors, risk and portfolio managers for pricing, hedging and capital maintenance.

Earlier, McGraw-Hill posted healthy fourth-quarter 2011 results. The quarterly earnings of 63 cents a share exceeded the Zacks Consensus Estimate of 57 cents, and jumped 17% from the prior-year earnings of 54 cents.

The company stated that the strong performance of S&P Indices, Capital IQ, Platts and healthy performance in the U.S. higher education market helped to alleviate the volatility in the global credit market and lower funding levels in the U.S. elementary-high school market, thereby boosting the quarterly profits.

Currently, we have a long-term "Neutral" recommendation on McGraw-Hill, which competes with Pearson plc ( PSO ). Moreover, the company holds a Zacks #2 Rank that translates into a short-term 'Buy' rating.

FACTSET RESH ( FDS ): Free Stock Analysis Report
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THOMSON REUTERS ( TRI ): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Stocks: FDS , MHP , PSO , TRI

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