GlobalNetFinancial and Telescan to merge

GlobalNetFinancial and Telescan to merge and Telescan are to merge in a deal which creates a global B2B and B2C "clicks and mortar" money and finance Internet company.

The combined company will operate under the GlobalNet banner and will be chaired by William Savoy, president of Vulcan Ventures and a Telescan board member. Stanley Hollander, GlobalNet chairman and CEO takes on the mantle of vice chairman of the merged entity. Telescan CEO Lee Barba assumes the chief executive's role at GlobalNet.

Under the terms of the agreement, each share of Telescan will be exchanged for 0.5 shares of GlobalNet. Based on Wednesday's closing stock price, the value of the merger stands at approximately $332 million.

On a pro forma basis, GlobalNet will have a current annual revenue run-rate in excess of $60 million, with more than $125 million in cash, securities and investments. Management believes there will be immediate revenue gains and cost savings resulting from the merger. GlobalNet will also maintain a significant portfolio of equity stakes in more than twenty-five rapidly growing online and offline companies.

The two companies have complementary strengths and serve diverse geographic markets. Telescan's business model is a US-based B2B model with an emerging consumer business led by its InvesTools subsidiary, while GlobalNetFinancial's model is both B2B and B2C and focuses on Europe and Scandinavia.

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