Joining FutureSource With eSignal Brings Added Benefits to Customer Base
Bedford, Mass - Interactive Data Corporation (NYSE:IDC), a leading global provider of securities pricing, financial information and analytic tools to institutional and individual investors, announced today it has signed an asset purchase agreement to acquire FutureSource, LLC and its subsidiaries for $18 million in cash. FutureSource is a privately held leader in the real-time futures, commodities and foreign exchange markets. The acquisition is expected to close during the third quarter of 2004, subject to customary closing conditions, including various governmental approvals.
Headquartered in Lombard, Illinois, with sales and support offices throughout the United States, Europe, Australia and Latin America, FutureSource provides traders, brokers and risk managers with comprehensive futures, options and cash price data, news, and charting analysis tools through a series of networked, stand-alone, and Internet delivery platforms and software applications. The company employs approximately 135 people worldwide.
"The acquisition of FutureSource will further enhance, expand and complement our eSignal division," stated Stuart Clark, president and chief executive officer of Interactive Data. "This acquisition enables us to quickly and cost-effectively pursue attractive growth opportunities as a business and information provider to the futures brokerage industry. With broad global coverage of futures and commodities data from FutureSource, we plan to strengthen and broaden our eSignal offerings while providing FutureSource customers and prospects with the opportunity to leverage additional content from the Interactive Data family, such as global equities and historical data from ComStock."
Interactive Data plans to combine FutureSource's products and services into its eSignal division. A provider of global, real-time market data and decision support tools to active investors worldwide, eSignal is based in Hayward, California. Chuck Thompson, president of eSignal, will be responsible for the daily operations of the combined business, which will maintain a strong presence in the Chicago area.
"We view the acquisition as a positive step for both businesses as well as our combined customer base," said Thompson. "The acquisition of FutureSource will immediately add 5,000 global customers utilizing 6,500 terminals to eSignal's growing customer base. Our goal is to offer the futures and commodities industry an even more sophisticated set of services, which we plan to expand through the synergies of the combined business."
FutureSource generated revenue of approximately $20.2 million in 2003 with cost of services, and selling, general and administrative expenses totaling approximately $18.1 million. Assuming the transaction closes during the third quarter, Interactive Data anticipates that the transaction will be earnings neutral in 2004 and, through a combination of planned revenue growth and operational synergies, accretive to earnings by the end of 2005.
About FutureSource, LLC
FutureSource provides traders, brokers and risk managers with comprehensive futures, options and cash price data, news, and charting analysis tools through a series of networked, stand-alone, and Internet delivery platforms and software applications. FutureSource is based in Lombard, Illinois, with offices throughout North America, Europe, Latin America and Australia and reseller offices that combine to serve futures and commodities traders worldwide.
The eSignal division (www.esignal.com) of Interactive Data Corporation (NYSE: IDC) (www.interactivedatacorp.com) is a leading global provider of financial and business information to professionals and active individual investors. Building on a 20-year legacy of delivering time-sensitive financial information, eSignal provides streaming, real-time market data, news and analytics. The company's suite of products includes eSignal®, Advanced GET?, MarketCenter?, Tahoe Charts?, and QuoTrek®.
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 service 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 1,700 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.
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. These statements include our statements discussing future financial conditions, results or projections, including statements relating to the anticipated impact of the FutureSource LLC acquisition on our business, including any impact on our earnings, the anticipated timing of the closing, our plans to expand the services currently offered to FutureSource and eSignal customers, and our plans to combine FutureSource's and eSignal's products and services to achieve cost-savings synergies and revenue growth. These statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from those contemplated by the forward-looking statements. Factors that could cause actual results to differ include: the acquisition may not close on a timely basis or at all; our ability to successfully integrate the FutureSource business; and our ability to retain key employees of FutureSource. 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) the possibility of a prolonged outage or other major unexpected operational difficulty at any of our data centers; (iii) our ability to maintain relationships with our key suppliers and providers of market data; (iv) our ability to maintain our relationships with service bureaus and custodian banks; (v) a decline in activity levels in the securities markets; (vi) consolidation of financial services companies, both within an industry and across industries; (vii) the continuing impact of cost cutting pressures across the industries we serve; (viii) new product offerings by competitors or new technologies that could cause our products or services to become less competitive or obsolete; (ix) our ability to derive the anticipated benefits from our acquisitions; (x) potential regulatory investigations of us or our customers relating to our services; (xi) the regulatory requirements applicable to our business including our FT Interactive Data subsidiary, which is a registered investment advisor; (xii) our ability to attract and retain key personnel; (xiii) the ability of our majority shareholder to exert influence over our affairs, including the ability to approve or disapprove any corporate actions submitted to a vote of our stockholders; (xiv) our ability to consolidate our data centers and achieve anticipated benefits; and (xv) our ability to comply in a timely manner with the rules and regulations set forth in the Sarbanes-Oxley Act and related SEC and NYSE rules and regulations. We undertake no obligation to update these forward-looking statements. These risks are described in detail in our periodic reports filed from time to time with the Securities and Exchange Commission, including our annual report on Form 10-K for the fiscal year ended December 31, 2003.
Interactive Data Corporation