BEDFORD, Mass., February 1, 2006 â Interactive Data Corporation (NYSE: IDC), a leading global provider of financial market data and analytic tools to institutional investors, active traders and individual investors, today announced a definitive agreement to acquire Quote.comÂ® and related assets from LycosÂ®, Inc. for $30.0 million in cash. The acquisition is expected to close during the first quarter, subject to customary closing conditions including governmental approvals.
Quote.com, also known as the Lycos Finance division, markets four distinct offerings that deliver financial content and trading tools to active traders and individual investors. These include the subscription-based QChartsâ¢ and LiveChartsâ¢ services that provide real-time streaming data and decision support tools to help active traders formulate investment strategies, as well as Quote.com, a financial news and analysis website, and Raging Bullâ¢, an online investment community and message board site. Upon completion of the transaction, the assets of Quote.com will be operated as part of Interactive Dataâs eSignal division.
âThe acquisition of Quote.com represents an important step in expanding eSignalâs capabilities, content and services,â said Stuart Clark, president and chief executive officer of Interactive Data Corporation. âWith the addition of the Quote.com assets, eSignal will deliver a broader suite of services to an even wider range of active trader customers and possess an increasingly valuable family of financial portals. We believe that the combination of our acquisition of the Quote.com assets, our December 2005 acquisition of IS.Teledata AG, and the product development initiatives now in place across our organization positions us to accelerate our revenue growth in 2006 and enhance our profitability in 2007.â
The addition of LiveCharts and QCharts will complement and augment eSignalâs existing portfolio of streaming, real-time market data platforms and analytical tools, and bring more than 14,500 direct subscribers to eSignal. As of September 30, 2005, eSignal reported approximately 46,000 direct subscription terminals. The combined set of websites, which will include eSignalâs recently launched MarketCenter.com and FutureSource.com, as well as Quote.com and RagingBull.com, generate an aggregate of 196 million page views per month. Interactive Data anticipates this will position eSignal to build a growing new revenue stream through online advertising.
âQuote.com has become an industry leader in providing premium subscription-based charting and analysis tools, and considered to be one of the leading brands of the Lycos Network,â said Alfred Tolle, chief executive officer, Lycos, Inc. âOver the past year, however, Lycos has evolved our business to focus on digital content creation, as a destination for people to create, store and market content. Going forward, it became evident that Quote.com did not fit in with this strategy and we began looking at a better fit for Quote.com. We believe that Quote.com will enhance and complement Interactive Dataâs eSignal portfolio of offerings, and that this transaction will help ensure that Quote.comâs customers continue to receive a high level of service.â
âThis acquisition will help eSignal achieve its goal of becoming the most comprehensive, flexible and easy-to-use financial information resource for active traders,â said Chuck Thompson, president of Interactive Dataâs eSignal division. âThe addition of the LiveCharts and QCharts services will further expand eSignalâs portfolio of services and tools, thereby enabling us to better address the unique needs and skill levels of both novice and more experienced traders who are seeking lower priced alternatives. At the same time, by uniting the financial websites from Quote.com and eSignal, we can create a compelling online destination for the millions of people who rely on the Internet for global financial markets information and the advertisers that target this audience. By taking advantage of our existing infrastructure and resources, we believe that we can cost-effectively and rapidly enhance the content and capabilities of these acquired services and websites.â
Quote.com currently employs approximately 30 people. The majority of these people are based in Waltham, Massachusetts, with the remainder in Santa Clara, California. David Kim, Quote.comâs general manager, will continue to oversee the Quote.com assets, reporting directly to Chuck Thompson, president of eSignal.
The Quote.com assets generated, on an unaudited basis, 2005 service revenue of approximately $12.7 million with total costs and expenses, excluding amortization, of approximately $9.5 million. Assuming the transaction closes during the first quarter of 2006, Interactive Data anticipates that the transaction will be earnings neutral in 2006, and through a combination of planned revenue growth and operational synergies, accretive to earnings in 2007 and beyond.