EDGAR Online Acquires Financial Insight Systems
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EDGAR Online Inc. Thursday entered into a definitive agreement to acquire Financial Insight Systems (FIS) in a deal valued at $28 million.
EDGAR Online is the an online provider of business, financial and competitive information derived from U.S. Securities and Exchange Commission. FIS, a privately held company, sells EDGAR-derived data and information systems to large financial institutions.
Under the terms of the stock purchase agreement, EDGAR Online will purchase all the outstanding shares of FIS for $11.8 million in cash, 2.45 million shares of newly issued EDGAR Online stock and a $6 million two-year 7.5 percent note.
Through the acquisition, the organization expects to enhance its position as a leading, full-service, financial information provider.
"FIS has concentrated on developing the technology base needed to extract and deliver very high-quality information from EDGAR filings," she added. "It has used this superior technology to penetrate the high-end of the financial information markets. Together we will have the marketing, technology and critical mass needed to become a major player in the business information industry."
She added that benefits of the union include an increase in corporate customers, improved cash flow and a stronger focus on technology.
The combined company is expected to have an immediate revenue run-rate in excess of $20 million per year upon completion of the transaction, doubling the current revenues of EDGAR Online and moving the company toward profitability.
The transaction has been recommended by the Board of Directors of each company and is expected to close within a month. EDGAR Online shareholder approval is not required.