Moody's Buys RBA International From Parabellum Investments

Moody's Corporation (NYSE:MCO) acquired London-based RBA International from Parabellum Investments. Being a leader in providing online retail bank training and certifications, RBA International offers training programs that are required to prepare bankers for the evolving retail banking landscape.

The acquisition strengthens the capabilities of Moody’s Analytics Learning Solutions (“MALS”). MALS is a unit of the Moody’s Analytics division, which offers online and classroom-based training services as well as credentialing and certification.

The Moody’s Analytics division, comprising more than 35% of the company’s revenues, offers solutions related to financial and risk-management activities of institutions.

The executive director of MALS, Ari Lehavi, said, “Technological advances and automation have raised the bar for retail bankers to provide a higher level of consultation and service to clients. The combined capabilities of Moody’s Analytics and RBA will help banks enhance the productivity and effectiveness of their retail professionals, which is an imperative in the current business environment.”

The transaction was funded with cash. It is not expected to have a material impact on Moody’s 2020 financials.

Evelyn Hunter, the director of RBA International, stated, “RBA was founded to strengthen the status of retail bankers as internationally recognized professionals. We look forward to working as a part of MA to help clients enrich and modernize their skillsets to reflect the dynamic shifts occurring in the retail banking sector.”

Notably, Moody’s is pursuing growth in areas outside the core credit ratings service. The company has increased its exposure to the banking and insurance industry, branching into the emerging and fast-growing professional services and enterprise risk solutions sectors.

In the past year, shares of Moody’s have gained 50.6% against 6.4% decline of the industry it belongs to.

Currently, the company carries a Zacks Rank #2 (Buy).

A few other top-ranked stocks from the finance space are mentioned below.

Cohen & Steers Inc.’s (NYSE:CNS) Zacks Consensus Estimate for current-year earnings has been revised upward by 7.6% over the past 60 days. Moreover, the stock has rallied 22.2% in the past six months. It currently sports a Zacks Rank #1 (Strong Buy).

Legg Mason, Inc. (NYSE:LM) has witnessed upward earnings estimate revision of 2.7% for the current fiscal year over the past 60 days. The company’s shares have gained 35.1% in the past six months. At present, the stock flaunts a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for earnings of Artisan Partners Asset Management Inc. (NYSE:APAM) has been revised 6.7% upward for the current year over the past 60 days. The stock has gained 12% over the past six months. Currently, it carries a Zacks Rank #2.

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