Interactive Data Corporation (Nasdaq NM: IDCO) today announced that it will acquire the Securities Pricing Service (MLSPS) of Merrill Lynch & Co., Inc. (NYSE: MER). MLSPS is a provider of information on global financial instruments and provides price evaluations on 2.9 million equity and fixed income securities. Its clients, which include a wide variety of mutual funds, banks, investment advisors, insurance companies and broker/dealers, utilize its evaluations to calculate net asset values and conduct investment research. Interactive Data Corporation will pay $48 million in cash for MLSPS. MLSPS' revenues in 2000 totaled approximately $22 million.
'This acquisition represents a very important step for Interactive Data,' said Stuart Clark, president and chief executive officer. 'In addition to expanding our client base through the addition of many external MLSPS clients, we will provide a wide range of pricing and other data services to Merrill Lynch itself on an ongoing basis. In fact, through this transaction, Interactive Data will become one of Merrill Lynch's leading data content providers. We are extremely pleased that in outsourcing its extensive and mission-critical data content needs, Merrill Lynch, one of the world's foremost financial institutions, has chosen Interactive Data to service its data needs. We expect the transaction to be earnings neutral during the integration phase in 2002 and accretive to earnings in 2003.'
Mr. Clark added, 'MLSPS will be integrated with our FT Interactive Data branded business, enabling us to enhance our pricing and coverage of fixed income securities as a result of the additional resources we acquire and through our access to data from the Merrill Lynch trading desks. Through the combination of MLSPS and FT Interactive Data, we will be able to offer an unprecedented quality of product and service to our customers and to the rest of the financial services industry.'
The acquisition is expected to close in the first quarter of 2002.
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 is subject to the safe-harbor created by such Act. These statements involve known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from those contemplated in the forward-looking statements. Such factors include, but are not limited to: (i) the presence of competitors with greater financial resources than the Company's and their strategic response to the Company's services and products; (ii) changes in technology, which could affect the competitiveness of the Company's products and services; (iii) a decline in activity levels in the securities markets, which could lower demand for the Company's products and services; (iv) consolidation of financial services, both within an industry and across industries, which could lower demand for the Company's products and services; (v) the loss of key employees assigned to work associated with the integration of the recently acquired businesses of the Company and other delays in integration; (vi) prolonged outage at one of the Company's data centers; (vii) the acceptance of the Internet as a reliable real-time distribution platform by institutional customers; (viii) the ability of the Company to broaden its subscriber base by adding more individual investors outside of the Company's traditional "active-trader" market; (ix) the potential obsolescence of the Company's services due to the introduction of new technologies; and (x) other trends in competitive or economic conditions affecting the Company's financial condition or results of operations not presently contemplated. The Company undertakes no obligation to update these forward-looking statements.
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, dividend, corporate action, and descriptive information for more than 3.5 million securities traded around the world, including hard-to-value, unlisted fixed income instruments. The company links to most of the world's best-known financial service and software companies for trading, analysis, portfolio management, and valuation.
Interactive Data Corporation is headquartered in Bedford, Massachusetts. Through its branded businesses, FT Interactive Data, CMS BondEdge, and eSignal, Interactive Data Corporation has approximately 1,600 employees in 22 offices in 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 Interactive Data Corporation.
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Lippert/Heilshorn & Associates