Interactive Data Corporation, a provider of financial market data, analytics and related services, has agreed to acquire Kler’s Financial Data Service S.r.l., a provider of reference data to the Italian financial industry, for a purchase price of 19.0 million (or approximately $29.5 million based on current exchange rates) in cash. The transaction is expected to be completed early in the third quarter of 2008, contingent upon customary closing conditions.
Kler’s, which is based in Rome, is a privately held provider of reference data, including corporate actions and taxation information, on Italian and international securities, with coverage of equities, listed and unlisted Italian bonds, funds, simple derivatives and warrants. The company’s clients include Italian banks and custodians.
“Acquiring Kler’s will help us accomplish two objectives simultaneously,” says Stuart Clark, Interactive Data’s president and chief executive officer. “First, we see it as an excellent fit for our Pricing and Reference Data business, enabling Interactive Data to provide a more complete offering of high-quality Italian data to our current clients. Second, it supports our previously stated goal of growing our business outside North America by further strengthening our position as a leading financial information provider within the European market.”
Kler’s currently has 44 employees based in Rome. Interactive Data plans to retain the Rome office, adding to its existing presence in Milan, and will market Kler’s services in Italy as Interactive Data Kler’s.
Based on the unaudited financial statements provided to Interactive Data (which were prepared in accordance with International Financial Reporting Standards), Kler’s 2007 revenue was 5.7 million (or approximately $8.8 million based on current exchange rates) with operating expenses, including depreciation, of 2.5 million (or approximately $3.9 million based on current exchange rates). Interactive Data’s outlook for 2008 will be updated when the Company announces its second-quarter 2008 financial results on 24 July 2008.
The final purchase price is subject to working capital adjustments.