Merrill Lynch is to acquire the business of Equity Methods, an Arizona-based supplier of equity award reporting, forecasting and valuation services. Financial terms of the deal were not disclosed.
Under the agreement, the six-year old Equity Methods will continue to operate independently under its own brand, as part of the Merrill Lynch Global Private Client Retirement Group, serving the marketplace through strategic partnerships and direct sales to corporate issuers. The firm will maintain its headquarters in Scottsdale, Arizona and David Roberts, president & CEO of Equity Methods will remain in his current role.
Merrill Lynch clients are currently served by Equity Methods for financial reporting in accordance with new Financial Accounting Standards Board (FASB) regulations. The company's Option Navigator software is used by clients to perform option valuation, financial reporting and option expense forecasting.
Robert McCann, vice chairman and president of the Global Private Client Group at Merrill Lynch says new accounting rules issued by FASB have resulted in the need for increased financial reporting and forecasting capabilities across the marketplace.
"This acquisition allows us to offer more comprehensive and consultative services in this regard and further establish Merrill Lynch as a leader in corporate equity award programmes," he says.
Merrill Lynch services approximately 400 equity award programmes representing one million individuals.