Barra to Be Acquired and Combined with MSCI

NEW YORK, Apr 6, 2004 (BUSINESS WIRE) -- Morgan Stanley Capital International Inc. ("MSCI") and Barra, Inc. (Nasdaq: BARZ) announced today the signing of a definitive merger agreement. Under the terms of the agreement, MSCI's majority shareholder, Morgan Stanley, will acquire Barra for $41.00 per share in cash, or an aggregate consideration of approximately $816.4 million. Barra's operations will be combined with MSCI following the closing of the transaction, which has been approved by the Boards of Directors of both Morgan Stanley and Barra. The transaction is currently expected to close in 60 to 120 days, subject to regulatory and Barra shareholder approval, and customary closing conditions.

The combination of MSCI and Barra will create a leading global provider of benchmark indices and risk management analytics. MSCI and Barra will together have the capability to meet increasingly complex client needs, creating groundbreaking new research and product standards in all asset classes, combined with unrivalled global distribution and client support.

"Both companies are leaders in their respective fields, distinguished by a strong research focus and a drive to bring to market innovative products that are instrumental in managing investment portfolios, as well as enterprise-wide investments," said Henry Fernandez, President and Chief Executive Officer of MSCI. "The combination of MSCI's deep understanding of indices across asset classes and Barra's industry leading risk management analytics will provide a powerful platform for enhancing our clients' investment processes within and across asset classes."

"The combination of the two firms will create a global market leader that can deliver innovative solutions to a wide range of investment issues faced by our clients," said Kamal Duggirala, Chief Executive Officer of Barra. "Together, Barra and MSCI can accelerate research and development across asset classes to create products that respond to the evolution of financial markets worldwide. Barra's Board of Directors is pleased with the terms of this transaction and believes it is in the best interests of Barra's stockholders."

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