Headquartered in Lombard, Illinois, with sales and support offices throughout the United States, Europe, Australia and Latin America, FutureSource provides traders, brokers and risk managers with comprehensive futures, options and cash price data, news, and charting analysis tools through a series of networked, stand-alone, and Internet delivery platforms and software applications. The company employs approximately 135 people worldwide.
"The acquisition of FutureSource will further enhance, expand and complement our eSignal division," stated Stuart Clark, president and chief executive officer of Interactive Data. "This acquisition enables us to quickly and cost-effectively pursue attractive growth opportunities as a business and information provider to the futures brokerage industry. With broad global coverage of futures and commodities data from FutureSource, we plan to strengthen and broaden our eSignal offerings while providing FutureSource customers and prospects with the opportunity to leverage additional content from the Interactive Data family, such as global equities and historical data from ComStock."
Interactive Data plans to combine FutureSource's products and services into its eSignal division. A provider of global, real-time market data and decision support tools to active investors worldwide, eSignal is based in Hayward, California. Chuck Thompson, president of eSignal, will be responsible for the daily operations of the combined business, which will maintain a strong presence in the Chicago area.
"We view the acquisition as a positive step for both businesses as well as our combined customer base," said Thompson. "The acquisition of FutureSource will immediately add 5,000 global customers utilizing 6,500 terminals to eSignal's growing customer base. Our goal is to offer the futures and commodities industry an even more sophisticated set of services, which we plan to expand through the synergies of the combined business."
FutureSource generated revenue of approximately $20.2 million in 2003 with cost of services, and selling, general and administrative expenses totaling approximately $18.1 million. Assuming the transaction closes during the third quarter, Interactive Data anticipates that the transaction will be earnings neutral in 2004 and, through a combination of planned revenue growth and operational synergies, accretive to earnings by the end of 2005.