FactSet Research Systems Acquires Derivative Solutions
FactSet Research Systems Inc. Acquires Derivative Solutions
Tuesday August 2, 7:00am ET
Acquired Product Suite Complements FactSet's Fixed Income Reference Data and Portfolio Analytics Services
NORWALK, Conn.--(BUSINESS WIRE)--Aug. 2, 2005--FactSet Research Systems Inc. (NYSE: FDS - News), a major supplier of computer-based financial and economic data to the investment community, today announced that it has acquired all of the outstanding capital stock of Derivative Solutions Inc. FactSet paid consideration of $42.5 million in cash and 305,748 shares of FactSet common stock. Revenues for Derivative Solutions were approximately $10 million for the year ended December 31, 2004.
Based in Chicago, Derivative Solutions provides fixed income analytics, portfolio management and risk management solutions to major banks, insurance companies, investment managers, dealers and other financial institutions. Founded in 1991, Derivative Solutions is known as a market leader in serving structured products specialists.
"Derivative Solutions has positioned itself as a leading edge provider of analytics to fixed income market participants," said Philip Hadley, FactSet's CEO. "Its suite of products, along with its team of highly quantitative fixed income experts, will significantly enhance our portfolio analytics and security modeling capabilities and complement our current offerings for equity investment professionals."
"We are excited about the opportunity to join forces with FactSet and offer our existing and future clients the combined expertise of both companies," said Douglas Wheeler, the founder and CEO of Derivative Solutions. "FactSet's service, with its premium position in the global money management and brokerage community, as well as its extensive available content and advanced software delivery, is the perfect platform to enhance service to our clients and expand the market penetration of our fixed income analytics."
FactSet Research Systems Inc. (http://www.factset.com) is a leading provider of global financial and economic information, including fundamental data on tens of thousands of companies worldwide. Combining more than 200 databases into its own dedicated online service, the Company also provides the tools to download, combine and manipulate the data for investment analysis.
The Company, headquartered in Norwalk, Connecticut, was formed in 1978 and now conducts operations, along with its affiliates, from more than twenty-two locations worldwide, including Boston, New York, Chicago, San Mateo, London, Frankfurt, Paris, Tokyo, Hong Kong and Sydney.
About Derivative Solutions
Derivative Solutions Inc. is a leading provider of analytics and portfolio management software to financial institutions trading and investing in bond markets. Since 1991, Derivative Solutions products have provided tools necessary for the proper valuation and risk management of fixed income securities including CMOs, ABS, CMBS, CDOs, MBS, treasury, agency, corporate, municipal and derivative instruments. Traders, analysts, portfolio managers and risk managers at leading Wall Street institutions, as well as regional dealers, banks, insurance companies, investment managers, and other financial market participants use the Derivative Solutions suite of products for bond trading, portfolio management, risk management, hedging and performance attribution.
About Marlin & Associates
Marlin & Associates (M&A) initiated this transaction and acted as exclusive advisor to Derivative Solutions. M&A is a specialized investment banking advisory and consulting firm providing transaction advice and services to middle-market firms in the media, technology, information and business services sectors. The firm is based in New York City and Washington DC.