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If I Were Running Factset
Matt Ober
March 04, 2025
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Sometimes I think about, what would I do if I were running Factset $FDS ( ▲ 0.44% ) .
I’d be more aggressive on transformational acquisitions and on acquiring unique data assets. It sounds so easy, but they haven’t done it. They have made some good acquisitions over the years, most recently acquiring an Order Management System called LiquidityBook, but nothing that gets me excited. Nothing that gets me up in the morning saying, WOW, DAMN, now that’s a game changer.
So what should they acquire? If they are going to do the data acquisition playbook and expand their reach outside of just selling to financial institutions then they should follow the footsteps of IHS or run an Informa Intelligence playbook, but buying better assets. Hedge Funds and financial analysts buy every type of data. If its automotive insights that those in the auto industry need, then analysts investing in the autos space want it too. In other words, every data asset you buy is relevant to the financial industry. There is a reason why S&P owns CarFax!
So let’s talk acquisitions. First, an easy one- Aggregate intelligence. An easy one, its private, not expensive, and fits into the Factset comfort zone of not spending too much. Why? Air Travel, Hospitality, Rental Cars, RV Parks, & Self Storage Data- they have unique industry-specific data and it’s super valuable! AND hedge funds and financial analysts already buy it. ALSO it’s super under-monetized!
If you are set on staying in the financial markets and acquiring in that world, then it’s time to look at Morningstar. Yes, it’s potentially hard to acquire given the insider ownership, but it’s a big swing, not too big to make it happen and it gives you a great asset that financial advisors love. Factset is moving more and more towards wealth management and that’s Morningstar’s bread and butter. Plus they own Pitchbook! Private data anyone?!
Lastly- the big swing. You want to make a big move, maybe it’s not an acquisition, but more a merger. Reach out to $MSCI ( ▲ 0.93% ) . Combine the rich index business and their Barra Risk business with the Factset terminal which has a great multi-asset class risk system as well! If you are going to go big and all in on the financial markets, then why not tie up with MSCI? They bring an incredible business that has a strong talent base which marries perfectly with Factset. Factset should have bought Axioma which rebranded to Qontigo before it was acquired by Deutsche Borse. That was a miss. Now is the time to fix it.
There are dozens and dozens of other smaller data tuck-ins that come to mind that could be picked up which should be part of the Factset plan, but taking a few big swings would change the trajectory of the business.
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