The cash consideration to be paid is based in part on revenues transferred to FactSet by consenting datafeed customer users of Thomsonâs database.
In addition, upon closing, the companies will enter into a Transitional Services Agreement to provide certain transitional services for up to 18 months after closing, including consulting and support services to give FactSet a full understanding of the structure and content of the database, and regular updates to the database, provided on the same schedule and with the same timeliness, content and quality as the updates sent to Thomsonâs clients.
This sale is being made by Thomson Reuters to meet certain regulatory requirements of the European Commission (EC) and US Department of Justice (DOJ) in connection with Thomsonâs acquisition of Reuters, which closed on April 17, 2008, and is subject to approval by both agencies under those requirements.
If approved by both agencies, the sale is expected to close in the second calendar quarter of 2008.
"FactSet has a deep understanding of Thomsonâs Fundamentals database stemming from our distribution of this global database to the investment community since 1991,â said Philip A. Hadley, Chairman and CEO of FactSet. âWe anticipate branding and introducing our own copy of a Fundamentals database as FactSet Fundamentals. We expect to enhance it and provide our clients with another strong choice for global fundamentals data via FactSet.â FactSet will continue to redistribute the Thomson Fundamentals and Reuters Fundamentals databases to our clients as well as databases from S&P Compustat, Toyo Keizai (Japan) and Aspect Huntley (Australia).