S&P Global announced today that it will acquire Kensho, a Cambridge, Massachusetts startup that has concentrated on artificial intelligence and analytics for big financial institutions. The total value of the deal is $550 million in a mix of cash and stock.
Kensho, which counted S&P Global as a client/partner and an investor, launched in 2013 and has raised $67.5 million, according to Crunchbase. The most recent funding round was in fact led by S&P Global for $50 million in February 2017. They apparently liked Kensho so much, they bought the company.
"In just a short amount of time, Kensho's intuitive platforms, sophisticated algorithms and machine learning capabilities have established a wide following throughout Wall Street and the technology world," S&P global president and CEO Douglas Peterson said in a statement announcing the deal.
The company doesn't have small goals. Its stated mission involves solving some of the biggest analytical problems of our time -- no pressure or anything. In additional to financial services, the company also has a division called Koto, which concentrates on national security.
As you would expect in a deal like this, Kensho sees S&P Global providing it with financial resources it couldn't provide alone through conventional funding channels. To solve those big artificial intelligence problems requires world-class engineers, and that requires an owner or investor with deep pockets. They got that with today's announcement.
The good news for Kensho and its customers is that S&P Global intends to mostly leave it alone and let it do what it's been doing. It will continue to operate as an independent brand out of its Cambridge offices.
Per usual, the deal is going to be subject to regulatory approval before it closes, but it's not every day you have a company be your client, your investor and your owner, but that's what happened to Kensho today as it scored the investment hat trick.
This article originally appeared on TechCrunch.