Klerâs, which is based in Rome, is a privately held provider of comprehensive, high-quality 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 companyâs clients include most major Italian banks and custodians. Klerâs services are available as a downloadable datafeed for back-office applications or via an online browser that enables clients to search, design reports and perform analysis.
This acquisition represents an important element in Interactive Dataâs strategy to expand its reference data services and to continue increasing its direct presence across continental Europe. Reference data content has become a mission-critical component used to facilitate the timely processing of transactions and help address regulatory and reporting requirements. The addition of Klerâs will enhance the reference data content that Interactive Data already collects, processes and delivers to thousands of financial institutions and redistribution partners around the world. In addition, the Klerâs team will bring substantial expertise in the supply of data to the Italian financial community.
For clients in Italy, the addition of Interactive Dataâs rich content â particularly pricing data and evaluations for a wide range of Italian and international securities â will further strengthen Klerâs existing offerings. The availability of Italian reference data will also enable Interactive Data to develop evaluated pricing for Italian unlisted bonds.
Stuart Clark, Interactive Dataâs president and chief executive officer, stated: âAcquiring Klerâs will help us accomplish two objectives simultaneously. 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.â
Roger Sargeant, managing director, Interactive Data (Europe), commented: âKlerâs helps provide us with a stronger, richer platform to further expand our business in Italy, including offering us greater access to Italian fixed income data, tax and regulatory information, and funds data, as well as existing relationships with local software companies. The combination of Interactive Data and Klerâs will position us as a leading reference data provider in the Italian market, and will also allow us to offer a wider range of global pricing and evaluations to Italian financial institutions.â
Stefano Di Stefano, managing director, Klerâs, added: âWe are excited to join Interactive Data as an important part of its global operations. Interactive Data and Klerâs share the conviction that global data providers need to have deep local content in order to be most successful in regional markets, and we believe this is certainly the case in Italy, which has a vibrant fixed income and structured products market. We look forward to continuing to grow our business in Italy through the introduction of the unique Interactive Data content, particularly end-of-day pricing and bond evaluations.â
Klerâs 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 Klerâs services in Italy as Interactive Data Klerâs.
Based on the unaudited financial statements provided to Interactive Data (which were prepared in accordance with International Financial Reporting Standards), Klerâs 2007 revenue was â¬5.7 million (or approximately $8.8 million based on current exchange rates) with operating expenses, including depreciation, of â¬2.5 million (or approximately $3.9 million based on current exchange rates). Interactive Dataâs outlook for 2008 will be updated when the Company announces its second-quarter 2008 financial results on July 24, 2008.
The final purchase price is subject to working capital adjustments.
Interactive Data Corporation Forward-looking and Cautionary Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and Federal securities laws, and is subject to the safe-harbor created by such Act and laws. Forward-looking statements include all statements that are not historical and include our statements discussing our goals, beliefs, strategies, objectives, plans, prospects and opportunities, and our statements relating to (i) the anticipated impact of the Klerâs business on our business, including any impact on our earnings, (ii) the anticipated timing of the closing, (iii) our plans to expand and/or strengthen the services we offer, (iv) our ability to further expand our business in Italy and the European market, and (v) our plans to achieve operational synergies and revenue growth. These statements are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause actual results to be materially different from those contemplated by the forward-looking statements. Such factors include: (i) the fact that the acquisition may not close on a timely basis or at all, (ii) our ability to successfully integrate the Klerâs business, (iii) our ability to retain key employees of Klerâs, and other factors identified in our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission. We undertake no obligation to update these forward-looking statements.