(Reuters) - U.S. private equity firm Genstar Capital said on Thursday it would buy shareholder advisory firm Institutional Shareholder Services Inc (ISS) from Vestar Capital Partners for $720 million.
ISS will continue to operate independently after the deal closes in the fourth quarter, Genstar said in a statement.
Bought by private equity firm Vestar Capital in 2014, ISS has 900 employees covering 40,000 shareholder meetings of publicly traded companies every year, offering recommendations on everything from votes on executive pay to a company’s bylaws.
ISS’s special situations research team headed by Cristiano Guerra, which also provides recommendations on mergers and acquisitions, wields significant influence over the outcome of proxy fights and contested transactions.
Simpson Thacher & Bartlett LLP was legal adviser to ISS and Vestar Capital Partners while Willkie Farr & Gallagher LLP provided legal counsel to Genstar Capital.
Reporting by Nikhil Subba and Diptendu Lahiri in Bengaluru; Editing by Sai Sachin Ravikumar