Interactive Data to Acquire IS.Teledata; Transaction Will Strengthen and Expand Interactive Data's Content and Services, and Bro
November 09 2005 - 9:20AM
Business Wire
Interactive Data Corporation (NYSE: IDC), a leading provider of
financial market data and analytic tools to institutional
investors, active traders and individual investors, today announced
it has signed an agreement to acquire IS.Teledata AG and its
subsidiaries from its shareholders for a purchase price of EUR 48.5
million (or approximately $58.2 million based on current exchange
rates) in cash, or approximately EUR 44.5 million (or approximately
$53.4 million based on current exchange rates) net of expected cash
at IS.Teledata. The transaction is expected to be completed in the
fourth quarter of 2005, and is contingent upon attaining at least
95 percent approval from IS.Teledata shareholders as well as
customary closing conditions, including various governmental
approvals. IS.Teledata, headquartered in Frankfurt, Germany, is a
privately held provider of managed market data solutions to
financial institutions. IS.Teledata's offerings include hosting
services, software and content, and related services, which are
used by financial services firms to deliver a range of financial
content, business information and analytics to employees, customers
and business partners. IS.Teledata's growing base of around 200
clients throughout Europe includes leading retail banks, private
banks, investment banks, issuers, asset managers, online brokers
and infomedia portals which they service through offices in
Germany, Italy, Switzerland, France, Spain and the United Kingdom.
IS.Teledata's customizable managed market data solutions provide
access to a wide array of aggregated financial data that is
designed to assist its clients in optimizing their business
processes, lowering their costs, and improving relationships with
their customers. IS.Teledata currently employs more than 250
people. "Acquiring IS.Teledata will help us achieve several
strategic objectives," stated Stuart Clark, Interactive Data's
president and chief executive officer. "Firstly, IS.Teledata will
provide us with a valuable and established set of offerings that
will help us break into new markets and allow customers to better
use our content while lowering their operating costs. Secondly, we
will gain a stronger customer footprint across continental Europe
through which we can deliver a broader portfolio of content and
analytical tools designed for local marketplaces. Thirdly, we
believe that IS.Teledata will serve as a valuable product
innovation engine for our European operations, enabling us to
advance our services in new and exciting directions." ComStock,
Interactive Data's real-time datafeed business, has worked closely
with IS.Teledata since 1997, providing real-time content to the
majority of IS.Teledata customers in Europe. As part of a strategic
alliance between the two companies, ComStock has also been
reselling IS.Teledata products in North America on a private label
basis. Upon completion of the transaction, IS.Teledata will be
managed as part of ComStock. Stephan Wolf, spokesman of the
executive board of IS.Teledata, will report directly to Mark
Hepsworth, who was recently named president of ComStock, and work
closely with Interactive Data's other executives to expand its
business worldwide. "Acquiring IS.Teledata is a natural extension
of the strong relationship that ComStock and IS.Teledata have
developed during the past eight years," stated Mark Hepsworth,
president of ComStock. "Now we have an exciting opportunity to link
the broad capabilities of the Interactive Data family of businesses
with the proven aggregation strengths of IS.Teledata. This
combination will allow us to offer enterprise-wide solutions to our
customer base, and further leverage the breadth and depth of our
global distribution channels." Interactive Data expects that
IS.Teledata's 2005 service revenue will be in the range of EUR 35
million to EUR 38 million (or approximately $42 million to $46
million based on current exchange rates) with operating expenses,
including depreciation, in the range of EUR 31 million to EUR 34
million (or approximately $37 million to $41 million based on
current exchange rates). Assuming the transaction closes during the
fourth quarter of 2005, Interactive Data anticipates that the
transaction will be earnings neutral in 2005 and 2006, and through
a combination of planned revenue growth and operational synergies,
accretive to earnings in 2007. Interactive Data Corporation
Forward-looking and Cautionary Statements This press release
contains certain forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995 and Federal
securities laws, and is subject to the safe-harbor created by such
Act and laws. Forward-looking statements include our statements
discussing future financial conditions, results or projections,
including statements relating to (i) the anticipated impact of the
IS.Teledata on our business, including any impact on our earnings,
(ii) our estimation of IS.Teledata 2005 revenue and expenses, (iii)
the anticipated timing of the closing, (iv) our plans to expand the
services we offer to IS.Teledata, ComStock or Interactive Data
customers, (v) our ability to gain a stronger presence in Europe
and penetrate new markets for our services as a result of the
acquisition and accomplish our other strategic objectives, (vi) our
ability to facilitate better use of our content by our customers
and to lower the operating costs of our customers, and (v) our
plans to combine IS.Teledata and ComStock's products and services
to achieve cost-savings synergies and revenue growth. These
statements are subject to known and unknown risks, uncertainties,
assumptions, and other factors that may cause actual results to be
materially different from those contemplated by the forward-looking
statements. Such factors include: the acquisition may not close on
a timely basis or at all; our ability to successfully integrate the
IS.Teledata business; and our ability to retain key employees of
IS.Teledata. Other factors include, but are not limited to: (i) the
presence of competitors with greater financial resources than ours
and their strategic response to our services and products; (ii) a
possible decline in activity levels in the European securities
markets; (iii) new offerings by competitors or new technologies
that could cause our products or services to become less
competitive or obsolete; and (iv) other factors identified in our
most recent Annual Report on Form 10-K and Quarterly Report on Form
10-Q filed with the Securities and Exchange Commission. We
undertake no obligation to update these forward-looking statements.
About IS.Teledata AG IS.Teledata AG is Europe's largest provider of
customisable financial market information systems. About 200 retail
banks, private banks, investment banks, issuers, asset managers,
online brokers and media portals optimise business processes and
costs using tailored content and interactive analysis of financial
market data. IS.Teledata aggregates data from all asset classes and
in-house content and integrates them into modular Internet and
intranet applications and terminal solutions. Employees and
customers of financial service providers thus benefit from relevant
information and specific functionality in easy-to-use interfaces.
IS.Teledata AG has 250 corporate employees in seven European
countries. About ComStock ComStock, a subsidiary of Interactive
Data Corporation, is a leading provider of real-time global
financial information to financial institutions, financial
information re-distributors and online media portals worldwide.
ComStock's suite of services ranges from a real-time datafeed, to
fully customized and hosted market data solutions. About
Interactive Data Corporation Interactive Data Corporation is a
leading global provider of securities pricing, financial
information, and analytic tools to institutional and individual
investors. The Company supplies time-sensitive pricing (including
evaluated pricing), dividend, corporate action, and descriptive
information for more than 3.5 million securities traded around the
world, including hard-to-value instruments. Many of the world's
best-known financial services and software companies subscribe to
the Company's services in support of their trading, analysis,
portfolio management, and valuation activities. Interactive Data
Corporation is headquartered in Bedford, Massachusetts. Through its
branded businesses, FT Interactive Data, ComStock, CMS BondEdge,
and eSignal, Interactive Data Corporation has approximately 1,800
employees in offices located throughout North America, Europe,
Asia, and Australia. Pearson plc (NYSE: PSO), an international
media company, whose businesses include the Financial Times Group,
Pearson Education, and the Penguin Group, owns approximately 60
percent of the outstanding common stock of Interactive Data
Corporation. The FT Interactive Data business includes FT
Interactive Data Corporation, a Delaware corporation. The ComStock
business includes ComStock, Inc., a New York corporation.
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