Warburg Pincus and Silver Lake, US private equity firms, have entered into a definitive agreement to acquire a majority stake in Interactive Data, a provider of financial market data and analysis owned by UK educational media house Pearson, for $3.4bn.
Under the agreement, Interactive Data’s stockholders will receive $33.86 in cash for each share of Interactive Data common stock they own. This represents a premium of approximately 32.9% over the closing share price on January 14, 2010.
Following the completion of the transaction, Interactive Data will remain headquartered in Bedford, Massachusetts and maintain its offices around the world. The company will continue to be led by its senior management team.
Rona Fairhead, chairman of board of directors at Interactive Data, said: This transaction enables Interactive Data’s shareholders to realize substantial value and provides the company with partners who are committed to supporting its global expansion. With the support of Silver Lake and Warburg Pincus, I am confident that Interactive Data will take full advantage of its strong market position and the changes in technology and regulations that are shaping its industry.
Joe Osnoss, managing director of Silver Lake, said: Silver Lake and Warburg Pincus both have significant experience investing in market-leading companies at the intersection of financial services and technology. Interactive Data is particularly well-positioned as a global financial technology growth platform, and we expect a strong partnership between our firms and Interactive Data’s customers and employees in pursuing this opportunity.
Jim Neary, managing director at Warburg Pincus, said: This acquisition aligns well with our financial technology and information investment theses; Interactive Data is a market leader that provides critical data to its customers. We look forward to partnering with them, and Silver Lake, as the company continues to grow and expand its footprint.
Completion of the transaction is expected to occur by the end of the third quarter of 2010, following regulatory approvals and other customary closing conditions.