3. ACQUISITIONS Acquisition of RiskMetrics On June 1, 2010, MSCI acquired RiskMetrics Group, Inc. ("RiskMetrics"). Under the terms of the Agreement and Plan of Merger dated as of February 28, 2010 by and among MSCI, Crossway Inc. ("Merger Sub"), a wholly owned subsidiary of MSCI, and RiskMetrics, Merger Sub merged with and into RiskMetrics, with RiskMetrics continuing as the surviving corporation and a wholly owned subsidiary of MSCI. MSCI and RiskMetrics began joint operations immediately after the merger became effective. MSCI acquired RiskMetrics to, among other things, offer clients a more expansive portfolio of investment decision support tools that will enable clients to understand risk across their entire investment processes as well as broaden the concentration of the Company's client base beyond asset owners, asset managers and broker dealers to include a greater number of hedge fund, mutual fund and bank clients. The total preliminary purchase price for RiskMetrics was approximately $1,572.4 million and was comprised of: (in thousands) Cash $ 1,146,702 MSCI class A common stock valued using the New York Stock Exchange closing price on June 1, 2010 371,815 Preliminary fair value of outstanding vested and unvested stock options and unvested restricted stock awards assumed 53,879 Total preliminary purchase price $ 1,572,396 MSCI issued approximately 12.6 million class A common shares and reserved approximately 4.3 million class A common shares for outstanding vested and unvested stock options and unvested restricted stock awards assumed as part of the acquisition of RiskMetrics. The preliminary fair values of stock options assumed were estimated using a Hull-White Lattice option-pricing model. The preliminary fair value of the unearned portion of the unvested RiskMetrics stock options and restricted stock awards will be recorded as operating expense over the remaining service periods, while the preliminary fair values of the earned portion of the vested and unvested stock options and unvested restricted st