BEDFORD, Mass.--(BUSINESS WIRE)--Nov. 9, 2005--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.