Interactive Data Corporation has agreed to acquire Italian reference data provider Kler’s Financial Data Service for a purchase price of €19.0 million (approximately US$29.5 million) in cash, as part of its plans to increase its presence in continental Europe.
The transaction is expected to be completed early in the third quarter of 2008, contingent upon customary closing conditions and the price is subject to working capital adjustments. Kler’s, which is based in Rome, is a privately held provider of 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.
Kler’s services are available as a downloadable data feed for back office applications or via an online browser that enables clients to search, design reports and perform analysis. Kler’s current client list includes a number of the large custodians and banks in the country and Interactive Data is keen to get into the market and reach these clients. The availability of Italian reference data will also enable Interactive Data to develop evaluated pricing for Italian unlisted bonds.
Stuart Clark, Interactive Data’s president and CEO, reckons there are two main benefits to purchasing the Italian vendor. It will enable Interactive Data to provide a more complete offering of Italian data to its current clients, as well as supporting its entry into the Italian market. Roger Sargeant, managing director, Interactive Data (Europe), adds: “It will allow us to offer a wider range of global pricing and evaluations to Italian financial institutions.”
Interactive Data plans to retain Kler’s Rome office, which currently has 44 employees, and will market Kler’s services in Italy as Interactive Data Kler’s. According to unaudited financial statements provided to Interactive Data, Kler’s 2007 revenue was €5.7 million with operating expenses, including depreciation, of €2.5 million.