New York, NY, October 17, 2003 - Moneyline Telerate, majority owned by $3.5 billion fund One Equity Partners, announced today that it has resolved outstanding billing disputes with data provider Reuters Limited. As a result, Reuters has agreed to immediately withdraw its lawsuit against Moneyline Telerate, remove its threatened termination of its Transitional Services Agreement (TSA) with Moneyline Telerate and commence an independent audit to verify the disputed invoices. On September 23, 2003, Reuters filed a lawsuit in which it stated its intent to stop providing data to Moneyline Telerate, and consequently its customers, on December 19, 2003.
"We are pleased to announce that Reuters and Moneyline Telerate were able to work together to get to closure on this commercial dispute," said Christopher Feeney, chief executive officer of Moneyline Telerate. "There was a substantial invoice dispute and, understandably, Moneyline exercised its right to request an independent auditor to confirm the invoices. Reuters has agreed, so we are all moving forward."
On September 29th, in accordance with the TSA, and in an attempt to reach a settlement out of court, Moneyline Telerate placed the disputed money into an escrow account. As expected and as part of the settlement, a portion of the escrowed money was released to Reuters today, with a provision that it will be returned to Moneyline if the audit does not support Reutersâ invoices.
In addition to dismissal of the lawsuit, removal of the threatened termination and agreement to the independent audit, the two companies also agreed on several other open issues between the companies. These include a clear definition of the partiesâ rights in the event of future billing disputes, an agreed program for the previously planned transition of legacy BridgeChannel customers to Reuters and an agreement regarding the financial consideration for these users.
"The biggest winners are our customers, who no longer have to face any short-term business interruption concerns over the threat of termination of our services agreement with Reuters,â continued Feeney. âWe thank our customers for their support and commitment over these past few weeks. We remain committed to providing critical and time sensitive data and analytics to a growing number of leading institutions around the world and are eager to get back to focusing on what we do best; understanding our customers needs, and providing the best data services in the industry to meet those needs."
"Moneyline Telerate has the momentum, the strategy and the financial resources to succeed. Our recently announced Letter of Intent with Interactive Data Corporation represents the final strategic piece of a migration plan to move away from reliance on the Reuters Ticker Plant. We are gratified by the positive reaction in the marketplace to our products and services. Finally, Moneyline Telerate is very well funded and enjoys the full financial resources and commitment of One Equity Partners, a preeminent global private equity fund. As an affirmation of their full support, One Equity Partners has guaranteed Moneyline Telerateâs future disputed payments under the TSA. These ingredients together form what I believe to be the basis of an exciting period of growth," added Feeney.