Interactive Data is to acquire real-time market data outfit S&P Comstock from the McGraw Hill Companies for $115 million in cash.
The acquisition of Comstock fills a gap in Interactive Data's financial information coverage with the provision of real-time market data from stock exchanges and other sources worldwide.
Stuart Clark, president and chief executive officer of Interactive Data says: "ComStock specialises in the provision of real-time market datafeeds, which will fit well with Interactive Data's provision of end-of-day, snapshot and historical data services, covering more than 3.5 million securities."
He says that revenue and operational synergies between the ComStock business and both the institutional and retail segments of Interactive Data Corporation will generate a 20%-25% Ebitda return on investment within two to three years.
Assuming the transaction closes at the end of February 2003, the company expects the ComStock business to contribute in the range of $50-$55 million in revenues in 2003.
Massachusetts-based Interactive Data is itself 60% owned by Pearson.