Interactive Data Corp is to acquire German market data technology outfit IS.Teledata for EUR48.5 million in cash, in an effort to expand its content and presence in continental Europe.
The transaction is expected to be completed in the fourth quarter of 2005, and IS.Teledata will be managed as part of ComStock, Interactive Data's datafeed operation.
The two companies have a working relationship dating back to 1997, with Comstock providing real-time data to IS.Teledata customers in Europe, and re-selling the German firm's products in North America on a private label basis.
Privately-held IS.Teledata's offerings include hosting services, software and content, and related market data management services. The firm claims some 200 customers across Europe and employs approximately 250 people.
IS.Teledata's 2005 service revenue is expected in the range of €35 million to €38 million with operating expenses, including depreciation, in the range of €31 million to €34 million.
Stuart Clark, Interactive Data's president and chief executive officer says the acquisition will provide a foot in the door to new customers in Europe and enable a push into new markets.
"IS.Teledata will serve as a valuable product innovation engine for our European operations," he says, "enabling us to advance our services in new and exciting directions."
Upon completion of the transaction, which is subject to the customary approvals, Stephan Wolf, spokesman of the executive board of IS.Teledata, will report directly to Mark Hepsworth, who was recently named president of ComStock.