Edgar Online to acquire FIS

Edgar Online to acquire FIS

Edgar Online, the Internet-based provider of business, financial and competitive information derived from US Securities and Exchange Commission Edgar filings, is to acquire Financial Insight Systems (FIS), a privately-held company that sells Edgar-derived data and information systems to large financial institutions.

The combined company is expected to have an immediate revenue run-rate in excess of $20 million per year upon completion of the transaction, doubling the current revenues of Edgar Online and moving the company toward profitability.

Under the terms of the stock purchase agreement, Edgar Online will purchase all the outstanding shares of FIS for $11.8 million in cash, 2.45 million shares of newly issued Edgar Online stock and a $6 million two-year 7.5% note, for a total transaction value of $28 million. The transaction is expected to close within a month.

Following the deal, more than 70% of Edgar Online's revenues will now come from sales of customised data and information services directly to corporations. FIS major clients include Nasdaq, Thomson Financial, Pink Sheets, CCH and Verizon.

Albert Girod, founder and CEO of FIS, will become the chief technology officer of Edgar Online and will join the company's Board of Directors.

Susan Strausberg, CEO of Edgar Online comments: "FIS has concentrated on developing the technology base needed to extract and deliver very high quality information from Edgar filings. It has used this superior technology to penetrate the high-end of the financial information markets. Together we will have the marketing, technology and critical mass needed to become a major player in the business information industry."

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