Morgan Stanley set to acquire Barra

Morgan Stanley Capital International (MSCI), a provider of equity, fixed-income and hedge fund indexes based in New York, will acquire California-based technology company Barra within 120 days, for approximately $816.4 million, or $41.00 a share, the company said.

The merged entity will provide indexes and risk management analytics. The boards of directors of both companies have approved the move, which now needs to be ratified by regulators. It also requires Barra shareholder approval.

“The combination of MSCI’s deep understanding of indexes across asset classes and Barra’s industry-leading risk management analytics will provide a powerful platform for enhancing our clients’ investment processes with and across asset classes,” said Henry Fernandez, president and chief executive of MSCI.

Kamal Duggirala, chief executive officer of Barra, said the two companies can "accelerate research and development across asset classes to create products that respond to the evolution of financial markets worldwide".