IDC to Purchase Consolidated Market Data Feed Client Contracts from HyperFeed Technologies, Inc.
Tuesday October 28, 7:16 pm ET
BEDFORD, Mass.--(BUSINESS WIRE)--Oct. 28, 2003--Interactive Data Corporation (NYSE: IDC - News), a leading global provider of financial data and analytics to institutional and individual investors, announced today that it has agreed to purchase the consolidated market data feed client contracts from HyperFeed Technologies. The transaction is expected to close shortly and is subject to customary closing conditions.
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Chicago-based HyperFeed Technologies (Nasdaq: HYPR - News) is a provider of Managed Exchange Platform Services (MEPS) and H!BOX software and technologies. As part of the transaction, ComStock, Inc., a subsidiary of Interactive Data Corporation and a leading provider of real-time market data, will provide services to more than 250 HyperFeed clients. ComStock carries real-time content from over 180 global sources and exchanges covering more than 1.8 million instruments across all asset classes.
Under the terms of the purchase agreement, Interactive Data Corporation will pay HyperFeed $8.5 million for the customer contracts, made up of an initial payment of $6.25 million with the balance paid over 24 months as agreed upon milestones are reached. The company expects that for 2004, the acquired contracts will generate revenue of approximately one times the consideration to be paid for the contracts. The parties have also entered into a multi-year, strategic licensing agreement covering ComStock's use of HyperFeed's technology in order to facilitate a seamless customer migration experience. Additionally, ComStock market data will be offered on a preferred basis to any HyperFeed clients licensing HyperFeed technology solutions.
"We are pleased to have this opportunity to expand our global real-time information business by servicing these clients with real-time content and applications from ComStock," said Stuart Clark, president and chief executive officer of Interactive Data Corporation. "In addition to receiving our global real-time market data feed, these clients will also have access to a host of other services from Interactive Data Corporation, such as corporate actions, end-of-day, descriptive and historical data representing Interactive Data's 35 years of experience in the financial information business."
"We believe our customers will greatly benefit from the quality of Interactive Data Corporation's products and services and their commitment and expertise in the global market data industry," said Paul Pluschkell, HyperFeed's president. "Our divestiture from the market data business is consistent with our strategy to strengthen our focus and commitment to the software and technology aspect of our business - areas where we see the greatest opportunities for our continued growth and success."
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. 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, 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 - News), 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. |
