Subsequent Event

3 Months Ended

Nov. 30, 2021

Subsequent Events [Abstract]

Subsequent Event

Subsequent Event

As previously announced, on December 24, 2021, FactSet entered into a definitive agreement to acquire CUSIP Global Services ("CGS") from S&P Global Inc. for $1.925 billion in cash.

CGS manages a database of 60 different data elements uniquely identifying more than 50 million global financial instruments. It is the foundation for security master files relied on by critical front, middle and back-office functions. CGS is the exclusive provider of CUSIP and CINS identifiers globally and also acts as the official numbering agency for ISIN identifiers in the United States. The acquisition will significantly expand our critical role in the global capital markets, advancing our open data strategy.

We intend to fund this transaction through a combination of cash-on-hand and committed financing. In connection with entering into this agreement, we entered into a commitment letter under which PNC Bank and Bank of America will provide us with financing in the aggregate amount of up to $2.5 billion to assist with the acquisition, including a $500 million revolving credit facility. We intend to replace and refinance our existing revolving credit facility with proceeds from the new financing.

Revenues from CGS will be recognized based on geographic business activities in accordance with how our operating segments are currently aligned. CGS will function as part of CTS. While we have not yet completed a preliminary allocation of the purchase price to the assets and liabilities to be acquired, we expect the majority of the purchase price will be allocated to goodwill and acquired intangible assets. The acquisition is subject to customary closing conditions, including regulatory approvals and the consummation of the S&P Global and IHS Markit merger. The transaction is expected to close in the first quarter of calendar 2022.

Following the closing of this acquisition, we intend to suspend our share repurchase program for the remainder of fiscal 2022, except for potential minor repurchases to offset dilution from grants of stock options.