Moody’s Corp. is set to grow its commercial real estate data business, as the company announced Thursday that it is acquiring Reis, a commercial real estate data provider, for approximately $278 million in cash.
Reis currently provides analysis and forecasts for 275 metropolitan markets and 7,700 submarkets in areas like multifamily, affordable housing, office, retail, student housing, senior housing, and more.
In the deal, Moody’s will acquire all outstanding shares of Reis. Both companies’ boards of directors have approved the deal.
Mark Almeida, president of Moody’s Analytics, said that the deal will help increase its real estate data offerings and help the company provide more compelling analysis.
“Commercial real estate is analytically very complex, and Reis has committed decades of effort and expertise building a unique data asset with critical and hard to replicate information on this large and important asset class,” Almeida said.
“Their data on CRE supply and Moody’s Analytics’ insights on the demand for commercial properties will provide market participants with a powerful 360-degree view of the economics of CRE lending and investment,” Almeida added. “Working together, both Reis and Moody’s Analytics will become even more relevant and valuable to CRE finance professionals.”
Under the agreement, Moody’s will acquire all outstanding shares of Reis common stock for $23 per share. Upon completion of the deal, Reis will become a wholly owned subsidiary of Moody’s.
“The combination of Reis’s extensive data and Moody’s Analytics’ specialized capabilities aims to enhance analytical practices in the CRE market and contribute to the efficiency and liquidity of capital flows,” Moody’s said in a statement.
The firms expect the deal to close in the fourth quarter of 2018.
“Joining with Moody’s will accelerate our founding vision of bringing transparency to the commercial real estate asset class and superior decision support to all commercial real estate professionals,” Reis CEO Lloyd Lynford said.
“Our Board of Directors has thoroughly and carefully considered our alternatives and evaluated the proposal from Moody’s and believes it provides our stockholders with compelling value and an outstanding strategic platform for continued growth while benefiting our customers and employees,” Lynford added.