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FactSet (FDS) to Gain From BTU Analytics Buyout: Here's How

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FactSet Research Systems Inc.(FDS - Free Report) announced that it has completed the acquisition of BTU Analytics, a Lakewood, CO-based provider of data and analytics in the North American renewables, power, oil and natural gas sectors.

Founded in 2014, BTU Analytics is specialized in collecting raw information in the renewables, power, oil and natural gas marketplace, and converting the same into cross-commodity analytics, thereby helping investment professionals in the energy and renewable energy sectors.

BTU founders Andrew Bradford, Mason Ender, Tony Scott and Kathryn Downey Miller, along with their teams, have now become part of FactSet’s deep-sector content initiative.

So far this year, shares of FactSet have gained 0.9% compared with 11% rise of the industry it belongs to.

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How Will FactSet Benefit?

The acquisition brings in comprehensive sector data for North American power, oil, and gas sectors to FactSet’s content portfolio. This should help FactSet expand its industry-specific or deep-sector content for investment professionals.

FactSet’s vast global network and solid clientele, when combined with BTU Analytics’ data and analytic capabilities, should help investment professionals choose wisely in the energy marketplace.

Kristy Karnovsky, senior vice president and global head of Research, FactSet, stated, “The acquisition of BTU strengthens our position in the energy space, an area where we see rapidly growing demand from our clients. BTU Analytics is a leader across all fuel types, including the increasingly relevant power and renewables markets. FactSet’s integration of this data and analytics will provide our clients with the content they need to make sound investment and ESG decisions across the energy landscape.”

Zacks Rank and Stocks to Consider

FactSet currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Ranked (Strong Buy) stocks here.

Some better-ranked stocks in the broader Zacks Business Services sector include Paychex (PAYX - Free Report) , Interpublic (IPG - Free Report) and Atento S.A(ATTO - Free Report) , each carrying a Zacks Rank #2 (Buy).

Long-term (three to five years) expected earnings per share growth rate for Paychex, Interpublic and Atento is projected at 8%, 10.2% and 12%, respectively.