Interactive Data, a provider of financial market data, analytics and related solutions, has entered into a definitive agreement to be acquired by investment funds managed by Silver Lake and Warburg Pincus in a transaction with a total value of USD3.4bn.
The agreement was unanimously approved by the Interactive Data board of directors, taking into consideration the recommendation of the special committee composed solely of the company’s four independent directors.
This special committee was formed as part of the previously disclosed review of strategic alternatives that was conducted by Interactive Data’s board of directors. In addition, Pearson, Interactive Data’s majority stockholder, has formally approved the transaction.
Under the agreement, Interactive Data’s stockholders will receive USD33.86 in cash for each share of Interactive Data common stock they own. This represents a premium of approximately 32.9 per cent over the closing share price on 14 January 2010, the last trading day before the company announced that its board of directors was conducting a review of strategic alternatives.
Completion of the transaction is expected to occur by the end of the third quarter of 2010, following regulatory approvals and other customary closing conditions.
Rona Fairhead (pictured), chairman of Interactive Data’s board of directors, says: “This transaction enables Interactive Data’s shareholders to realise substantial value and provides the company with partners who are committed to supporting its global expansion. Interactive Data has an outstanding team of more than 2,400 people and the board thanks them sincerely for their skill and commitment in serving our customers and building the company over many years. With the support of Silver Lake and Warburg Pincus, I am confident that Interactive Data will take full advantage of its strong market position and the changes in technology and regulations that are shaping its industry.”
Mike Bingle, managing director of Silver Lake, says: "Interactive Data is an innovative leader in the information services industry, and our investment is a compelling addition to Silver Lake’s portfolio of premier technology-enabled companies. Interactive Data and the services it provides are essential to enhancing efficiency and transparency in the flow of global financial data."
Following the completion of the transaction, Interactive Data will remain headquartered in Bedford, Massachusetts and maintain its offices around the world. The company will continue to be led by its senior management team and expects to continue expanding its workforce over time.
The transaction has fully committed financing, consisting of a combination of equity to be invested by Silver Lake and Warburg Pincus and debt financing to be provided by Bank of America Merrill Lynch, Barclays Bank, Credit Suisse Securities (USA) and UBS Investment Bank. Silver Lake and Warburg Pincus are equal equity partners in this transaction.
