Press Release
Capital Resource Advisors To Acquire Barra Consulting Venture
BERKELEY, CA., March 27, 2002 - Barra, Inc. the global leader in risk management technology for investment professionals, today announced the disposition of its two consulting ventures, BARRA RogersCasey and Barra Strategic Consulting Group. Both firms are based in Darien, CT. "This is the conclusion of a two-year process of sharpening our strategic focus by exiting all non-strategic venture businesses," said Kamal Duggirala, chief executive officer of Barra.
BARRA RogersCasey
BARRA RogersCasey, Inc., the company’s pension fund consulting venture, has been sold to Capital Resource Advisors, a Chicago-based specialty financial services consulting firm. "BARRA RogersCasey is a strong pension consulting franchise and a great fit with Capital Resource Advisors," said Mr. Duggirala.
Capital Resource Advisors paid Barra $14 million in cash in exchange for all of the stock of BARRA RogersCasey. Net proceeds are expected to be approximately $11 million, resulting in an estimated pre-tax gain on sale of between $7-$8 million.
CIBC World Markets acted as financial advisor to Barra in connection with the sale. Bryant Park Capital, Inc. served as financial advisor to Capital Resource Advisors.
Barra Strategic Consulting Group
Barra Strategic Consulting Group, which provided project-based management consulting to asset managers, has ceased operations. Barra expects to record a charge of approximately $1.5 million in connection with severance and related closure costs.
"We explored several alternatives for this business, including a sale or spin-off, but the deteriorating financial condition of this business made other options infeasible," commented Mr. Duggirala.
Current and historical results of operations for these consulting businesses will be presented as discontinued operations in future Barra financial statements.
Barra is the global leader in delivering risk management systems and services to managers of portfolio and firm-wide investment risk. Since its inception in 1975, Barra's single vision - to empower its clients to make strategic investment decisions - has made Barra the industry standard in investment risk management. Headquartered in Berkeley, California, Barra has offices in all major financial centers around the world.
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