ScreamingMedia to buy Inlumen
ScreamingMedia to by Inlumen
October 29, 2002
by David B. Wilkerson
NEW YORK (CBS.MW) -- ScreamingMedia, a provider of web-based analytical services to financial services companies, said Tuesday it has agreed to buy privately held rival Inlumen for cash and stock.
Separately, ScreamingMedia said its board of directors approved the company's decision to change its name to Pinnacor Inc. to reflect the evolution of its asset mix. The name change will be effective Nov. 1.
ScreamingMedia would pick up 58 new customers in the Inlumen deal, and its Stockpoint analytical tool would be capable of offering real-time streaming technology and advanced news alerting capability, the company said.
Inlumen generated revenue of $1.2 million in the September quarter, the company said.
ScreamingMedia said it expects Inlumen to boost the value of contracts derived from financial services products to about 69 percent.
"The combination of ScreamingMedia and Inlumen will help us generate new revenue streams and deliver increased shareholder value," said Kirk Loevner, president and chief executive of ScreamingMedia, in a statement.
The acquisition, expected to close in November, will begin contributing to ScreamingMedia's cash flow and earnings before interest, taxes, depreciation and amortization immediately, the company said.
Shares of ScreamingMedia (SCRM) closed unchanged Monday at $1.29.
David B. Wilkerson is a reporter for CBS.MarketWatch.com in San Francisco.