Interactive Data Corporation (NYSE: IDC), a leading provider of
financial market data, analytics and related solutions, today
announced it has signed an agreement to acquire 7ticks, LLC, an
innovative provider of electronic trading networks and managed
services. The transaction is expected to be completed in early
2010, contingent upon closing conditions.
This acquisition represents an important element in Interactive
Data’s strategy to address the latency sensitive trading needs of
its institutional customers. Acquiring 7ticks will accelerate
Interactive Data’s plans to increase the flexibility, agility and
resiliency of its network infrastructure, thereby supporting a
broader range of high-quality direct exchange access and
consolidated datafeed services.
7ticks specializes in providing a growing base of proprietary
trading groups, clearing firms, global investment banks, brokers,
market makers, hedge funds and independent software vendors with
direct exchange access, proximity hosting, and support services for
facilitating ultra low latency electronic trading of North American
derivatives, options and commodities securities. 7ticks
distinguishes itself through industry leading network performance,
reliability and monitoring, which can help provide customers with
greater insight and transparency into their network connectivity
and lower their cost of ownership. The company is privately owned
and is headquartered in Chicago, Illinois with hosting facilities
in Chicago, the New York area, London and Frankfurt.
In recent years, financial institutions have increasingly moved
to evolve their trading operations to take advantage of changes in
the financial markets and continual advances in technology by
deploying sophisticated automated trading programs. Successful
execution of these trading programs requires ultra low latency
connectivity between an institution’s trading systems and a broad
range of stock exchanges and trading venues. According to Tabb
Group, a leading financial markets research and advisory firm, the
global market for low latency connectivity services for direct
exchange access is expected to grow from approximately $1.4 billion
in 2009 to over $2.0 billion by 2012.
Interactive Data expects to retain all of 7ticks’ 42 full-time
employees, including its leadership team. The 7ticks business will
be operated as part of Interactive Data’s newly formed Real-Time
Market Data and Trading Solutions Group, which is led by Jeffrey
Banker (see separate announcement also issued today). Services from
7ticks will be marketed as Interactive Data 7ticks following the
acquisition’s completion. 7ticks is in the process of increasing
its U.S. equities coverage and has plans to expand further into
Asia and Europe in the coming twelve months.
“Increasing our penetration in the electronic trading sector is
one of our top long-term strategic priorities, and we believe that
acquiring 7ticks will enable us to make significant progress in
this area,” stated Ray D’Arcy, Interactive Data’s president and
chief executive officer. “Over a relatively short period of time,
7ticks has built a world-class, ultra low latency network
infrastructure that is attracting a growing number of leading-edge
institutional customers. We are excited by the opportunities we see
to elevate our value proposition to our global customer base by
combining our low latency consolidated market data services with
ultra low latency managed connectivity from 7ticks.”
“We are extremely pleased to join forces with Interactive Data,”
stated Joe Bigane, managing director for 7ticks. “During the past
few years, we have generated significant momentum in the
marketplace and we are well positioned to build on this initial
success. With Interactive Data’s extensive range of complementary
world-class offerings, strong customer relationships, extensive
global distribution channels and financial resources, we believe
that we can accelerate our growth as we expand our customer base
and build out our infrastructure.”
Assuming the transaction closes in early 2010, Interactive Data
anticipates that the acquired business will be accretive to
earnings by 2011 through a combination of planned revenue growth
and operational synergies.
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 7ticks acquisition on our
business, including any impact on our earnings and cash flow, and
in particular that the acquired business will be accretive to
earnings by 2011; (ii) our plans to retain all of the 7ticks
employees; (iii) our plans to achieve operational synergies and
revenue growth; (iv) the impact that the acquisition will have on
our network infrastructure; (v) 7ticks’ plans to expand its
coverage in the U.S., Asia and Europe over the coming 12 months;
and (vi) the anticipated growth of the global market for low
latency connectivity services for direct exchange access. 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; we may not be successful in our efforts
to expand the 7ticks infrastructure globally; we may not be
successful in our efforts to expand the 7ticks customer base or
obtain the consent of all 7ticks customers to the assignment of the
7ticks contracts by the seller to us; and we may not be able to
retain key employees of 7ticks. Other factors include, but are not
limited to: (i) the risk of regulatory reform that could impact the
global market for low latency connectivity services for direct
exchange access; (ii) a possible decline in activity levels in the
global securities markets; (iii) the presence of competitors with
greater financial resources than ours and their strategic response
to our services and products; (iv) new offerings by competitors or
new technologies that could cause our products or services to
become less competitive or obsolete; and (v) 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 7ticks
7ticks is the driving force in high performance trading networks
and managed services for direct access to the financial markets.
The 7ticks team provides electronic trading infrastructure design,
procurement, installation, and hosting services that are enhanced
by ongoing management, support, and monitoring solutions.
Proprietary trading groups, clearing firms, global investment
banks, brokers, market makers, hedge funds, and independent
software vendors (ISVs) choose 7ticks for industry leading network
performance, reliability, monitoring insight, and cost savings.
7ticks is headquartered in Chicago, IL and has an active worldwide
presence, providing direct market access to leading exchanges and
proximity/support services in Chicago, New York, New Jersey,
Frankfurt and London.
About Interactive Data Corporation
Interactive Data Corporation (NYSE: IDC) is a leading global
provider of financial market data, analytics and related solutions
to financial institutions, active traders and individual investors.
The Company's businesses supply real-time market data,
time-sensitive pricing, evaluations and reference data for millions
of securities traded around the world, including hard-to-value
instruments. Many of the world's best-known financial service and
software companies subscribe to the Company's services in support
of their trading, analysis, portfolio management and valuation
activities. Interactive Data, headquartered in Bedford, Mass., has
approximately 2,400 employees in offices located throughout North
America, Europe, Asia and Australia. Pearson plc (NYSE: PSO; LSE:
PSON), an international media company, whose businesses include the
Financial Times Group, Pearson Education, and the Penguin Group, is
Interactive Data Corporation's majority stockholder.
For more information about Interactive Data Corporation and its
businesses, please visit www.interactivedata.com.
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