NEW YORK, June 20, 2018 /PRNewswire/ -- S&P
Global (NYSE: SPGI), a leading provider of transparent and
independent ratings, benchmarks, analytics and data to the capital,
corporate and commodity markets worldwide, announced today that it
is set to acquire the RateWatch business (RateWatch) from
TheStreet, Inc. (NASDAQ: TST), a B2B data business that offers
subscription and custom reports on bank deposits, loans, fees and
other product data to the financial services industry.
RateWatch, which was founded in 1989, was acquired by TheStreet in 2007. It will be integrated
into S&P Global Market Intelligence, a division of S&P
Global that provides essential intelligence for individuals,
companies and governments through financial and industry data,
research and news.
Under the terms of the agreement, S&P Global will acquire
from TheStreet, Inc., all the assets comprising its RateWatch
business for $33.5 million in cash,
subject to working capital and certain other customary adjustments.
The deal was simultaneously signed
and closed on the same day.
"RateWatch's robust datasets complement and strengthen our core
capabilities of providing differentiated data and analytics
solutions for the banking sector," said Mike Chinn, President of S&P Global Market
Intelligence and Executive Vice President, Data and Technology
Innovation for S&P Global. "S&P Global Market
Intelligence has a strong record of servicing the community bank
market, and we're excited to expand our products for one of our
fastest-growing market segments."
RateWatch provides clients with a robust bank deposit and loan
rate database covering almost 100,000 institutions dating back
about 20 years. With over 4,200 bank and credit union clients, the
acquisition of RateWatch will further bolster S&P Global Market
Intelligence's relationships within this key sector.
Given the transaction's size, S&P Global does not expect a
material impact to its adjusted earnings per share in 2018. The
return on invested capital (ROIC) is expected to exceed the
Company's required rate of return after three years.
Forward-Looking Statements: This press release
contains "forward-looking statements," as defined in the Private
Securities Litigation Reform Act of 1995. These statements, which
express management's current views concerning future events,
trends, contingencies or results, appear at various places in this
press release and use words like "anticipate," "assume," "believe,"
"continue," "estimate," "expect," "forecast," "future," "intend,"
"plan," "potential," "predict," "project," "strategy," "target" and
similar terms, and future or conditional tense verbs like "could,"
"may," "might," "should," "will" and "would." For example,
management may use forward-looking statements when addressing
topics such as: the outcome of contingencies; future actions by
regulators; changes in the Company's business strategies and
methods of generating revenue; the development and performance of
the Company's services and products; the expected impact of
acquisitions and dispositions; the Company's effective tax rates;
and the Company's cost structure, dividend policy, cash flows or
liquidity.
Forward-looking statements are subject to inherent risks and
uncertainties. Factors that could cause actual results to differ
materially from those expressed or implied in forward-looking
statements include, among other things:
- the impact of the recent acquisition of Kensho, including the
impact on the Company's results of operations; any failure to
successfully integrate Kensho into the Company's operations; any
failure to attract and retain key employees; and the risk of
litigation, unexpected costs, charges or expenses relating to the
acquisition;
- worldwide economic, financial, political and regulatory
conditions, including conditions that may result from legislative,
regulatory and policy changes associated with the current U.S.
administration or the United
Kingdom's withdrawal from the European Union;
- the rapidly evolving regulatory environment, in Europe, the United
States and elsewhere, affecting Ratings, S&P Global
Platts, Indices, and S&P Global Market Intelligence, including
new and amended regulations and the Company's compliance
therewith;
- the Company's ability to make acquisitions and dispositions and
successfully integrate the businesses we acquire;
- the outcome of litigation, government and regulatory
proceedings, investigations and inquiries;
- the health of debt and equity markets, including credit quality
and spreads, the level of liquidity and future debt issuances;
- the demand and market for credit ratings in and across the
sectors and geographies where the Company operates;
- concerns in the marketplace affecting the Company's credibility
or otherwise affecting market perceptions of the integrity or
utility of independent credit ratings;
- the effect of competitive products and pricing, including the
level of success of new product developments and global
expansion;
- consolidation in the Company's end-customer markets;
- the introduction of competing products or technologies by other
companies;
- the impact of customer cost-cutting pressures, including in the
financial services industry and the commodities markets;
- a decline in the demand for credit risk management tools by
financial institutions;
- the level of merger and acquisition activity in the United States and abroad;
- the volatility of the energy marketplace;
- the health of the commodities markets;
- the Company's ability to attract, incentivize and retain key
employees;
- the Company's ability to maintain adequate physical, technical
and administrative safeguards to protect the security of
confidential information and data, and the potential of a system or
network disruption that results in regulatory penalties, remedial
costs or improper disclosure of confidential information or
data;
- the Company's ability to successfully recover should it
experience a disaster or other business continuity problem from a
hurricane, flood, earthquake, terrorist attack, pandemic, security
breach, cyber-attack, power loss, telecommunications failure or
other natural or man-made event;
- the Company's ability to adjust to changes in European and
United Kingdom markets as the
United Kingdom leaves the European
Union, and the impact of the United
Kingdom's departure on its credit rating activities and
other European and United Kingdom
offerings;
- changes in applicable tax or accounting requirements;
- guidance and information regarding the implementation of the
Tax Cuts and Jobs Act;
- the level of the Company's future cash flows and capital
investments;
- the impact on the Company's revenue and net income caused by
fluctuations in foreign currency exchange rates; and
- the Company's exposure to potential criminal sanctions or civil
penalties if it fails to comply with foreign and U.S. laws and
regulations that are applicable in the domestic and international
jurisdictions in which it operates, including sanctions laws
relating to countries such as Iran, Russia,
Sudan and Syria, anti-corruption laws such as the U.S.
Foreign Corrupt Practices Act and the U.K. Bribery Act of 2010, and
local laws prohibiting corrupt payments to government officials, as
well as import and export restrictions.
The factors noted above are not exhaustive. The Company and its
subsidiaries operate in a dynamic business environment in which new
risks emerge frequently. Accordingly, the Company cautions readers
not to place undue reliance on any forward-looking statements,
which speak only as of the dates on which they are made. The
Company undertakes no obligation to update or revise any
forward-looking statement to reflect events or circumstances
arising after the date on which it is made, except as required by
applicable law. Further information about the Company's businesses,
including information about factors that could materially affect
its results of operations and financial condition, is contained in
the Company's filings with the SEC, including the "Risk Factors"
section in the Company's most recently filed Annual Report on Form
10-K and any subsequently filed Quarterly Report on Form 10-Q.
About S&P Global
S&P Global is a leading
provider of transparent and independent ratings, benchmarks,
analytics and data to the capital and commodity markets worldwide.
The Company's divisions include S&P Global Ratings, S&P
Global Market Intelligence, S&P Dow Jones Indices and S&P
Global Platts. S&P Global has approximately 20,000 employees in
31 countries. For more information visit www.spglobal.com.
About S&P Global Market Intelligence
At S&P Global Market Intelligence, we know that not all
information is important—some of it is vital. We integrate
financial and industry data, research and news into tools that help
track performance, generate alpha, identify investment ideas,
understand competitive and industry dynamics, perform valuations
and assess credit risk. Investment professionals, government
agencies, corporations and universities globally can gain the
intelligence essential to making business and financial decisions
with conviction.
S&P Global Market Intelligence, a division of S&P Global
(NYSE: SPGI), provides essential intelligence for individuals,
companies and governments to make decisions with confidence. For
more information, visit www.spglobal.com.
About RateWatch, Inc.
RateWatch,
established in 1989, is a data collection company gathering
thousands of data points from nearly 100,000 financial institution
locations across the United States
every week. These data points are geographically packaged into
reports and sold to financial institutions for competitive pricing
analysis. Over 4,200 financial institutions use RateWatch reports
to monitor competitors' deposit and loan rates and fees. The FDIC
and the Federal Reserve also use RateWatch data for internal
analysis and research.
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SOURCE S&P Global