Moody’s Corp. has acquired Lewtan Technologies, a leading provider of analytical tools and data for the global structured finance market, for an undisclosed amount.
Based in Waltham, Massachusetts, Lewtan provides software to issuers, investors, underwriters and others to administer, monitor and value securitized transactions. Its products cover more than 200,000 bonds and 20,000 securitized deals, serving over 300 financial institutions worldwide.
Lewtan will become part of Moody’s Analytics’ structured analytics and valuations (SAV) business, which provides an extensive data and analytics library for securitized assets. SAV operates within Moody’s Research, Data and Analytics (RD&A) line of business.
“Lewtan’s capabilities are powerful complements to our structured analytics business,” Mark Almeida, president Moody's Analytics, said in a press release. “With a strong position in the European market and a leading loan-level database of residential mortgages, Lewtan expands our global reach and broadens our product offering, positioning Moody’s Analytics to deliver a more comprehensive solution to our customers.”
Moody’s will fund the acquisition primarily with U.S. cash on hand. It expects the acquisition to have a “minimal” impact on its earnings per share in 2014 and 2015. For its fiscal year ending September 30, 2014, Lewtan generated revenue of approximately $25 million.
In addition Moody's Analytics, Moody's Corp. is the parent company of Moody's Investors Service, which provides credit ratings and research covering debt instruments and securities, including securitizations.