BARRA Signs Agreement To Acquire Redpoint Software

BARRA, Inc., a provider of analytical software and data, consulting, and money management services, has signed a definitive agreement to acquire Redpoint Software, Inc. Redpoint supplies corporations with risk management solutions and enterprise wide data management systems.

The planned acquisition will offer complete enterprise wide risk management solutions combining Redpoint's ability to integrate data from disparate systems with BARRA's advanced risk models.

The purchase will be for approximately $5.5 million in cash, plus contingent payments of up to an additional $12.5 million over a period of two years following the closing, based upon the financial performance of the acquired assets. BARRA will acquire substantially all of Redpoint's assets and certain liabilities and the acquisition will be accounted for using the purchase method of accounting. The transaction is subject to certain terms and conditions to closing, described in the definitive agreement.

"There are tremendous opportunities for us to grow this business because enterprise wide risk is a global issue," said Aamir Sheikh, director of BARRA's enterprise wide risk management services business unit. "BARRA's worldwide sales and support infrastructure provide the means for delivering this new set of complete solutions," he added.

The business acquired from Redpoint will become a part of BARRA's Enterprise Wide Risk Management Services. Richard Moran, who is currently president and CEO of Redpoint, will become vice president of the Redpoint business unit at BARRA, and will remain responsible for the marketing and sales of the Redpoint products acquired by BARRA.

BARRA's risk advisory board, announced in February of this year, will continue to guide the development of BARRA's Total Plan Risk System, as well as future enterprise wide risk services for investment managers.