FactSet Enters into Definitive Agreement to Sell its Market Metrics Business
May 23 2016 - 07:00AM
FactSet Research Systems Inc. (NYSE:FDS) (NASDAQ:FDS), a leading
provider of integrated financial information and analytical
applications, today announced that it has entered into a definitive
agreement to sell its market research business focused on
advisor-sold investments and insurance, consisting of Market
Metrics and Matrix Solutions, to Asset International, a portfolio
company of Genstar Capital. The total purchase price is
approximately $165 million, subject to certain working capital
adjustments, with an additional earn-out of $10 million based on
the achievement of certain growth targets over the next two years.
“This transaction is consistent with our long-term strategic
direction and our commitment to delivering value to our
shareholders,” said Phil Snow, Chief Executive Officer of FactSet.
“We appreciate the efforts of the dedicated employees who have
grown Market Metrics and Matrix Solutions into industry
leaders.”
Subject to regulatory approvals, the transaction is expected to
close in FactSet’s fourth quarter of fiscal 2016, with the proceeds
from the sale being primarily used for share repurchases under the
Company’s existing program. On May 19, 2016, FactSet’s Board of
Directors approved a $165 million expansion of the existing share
repurchase program. The sale is not expected to have a material
impact on FactSet’s fourth quarter fiscal 2016 or full-year fiscal
2017 results.
SunTrust Robinson Humphrey acted as financial advisor and
Cravath, Swaine & Moore LLP acted as legal advisor to FactSet
on this transaction.
About FactSetFactSet delivers the world's best
insight and information to investment professionals through
superior analytics, service, content, and technology. More than
63,000 users make smarter investment decisions with FactSet's
desktop analytics, mobile applications, and comprehensive data
feeds. FactSet is also an honoree of Fortune's 100 Best Companies
to Work For and a Best Workplace Award recipient in the United
Kingdom and France. FactSet is listed on the New York Stock
Exchange and NASDAQ (NYSE:FDS) (NASDAQ:FDS).
Forward-looking StatementsThis news release
contains forward-looking statements based on management's current
expectations, estimates and projections. All statements that
address expectations or projections about the future, including
statements about the Company's strategy for growth, product
development, market position, subscriptions, expected expenditures
and financial results are forward-looking statements.
Forward-looking statements may be identified by words like
"expects," "anticipates," "plans," "intends," "projects," "should,"
"indicates," "continues," "subscriptions" and similar expressions.
These statements are not guarantees of future performance and
involve a number of risks, uncertainties and assumptions. Many
factors, including those discussed more fully elsewhere in this
release and in FactSet's filings with the Securities and Exchange
Commission, particularly its latest annual report on Form 10-K and
quarterly reports on Form 10-Q, as well as others, could cause
results to differ materially from those stated. These factors
include, but are not limited to: the current status of the global
economy; the ability to integrate newly acquired companies and
businesses; the stability of global securities markets; the ability
to hire qualified personnel; the maintenance of the Company's
leading technological position; the impact of global market trends
on the Company's revenue growth rate and future results of
operations; the negotiation of contract terms with corporate
vendors, data suppliers and potential landlords; the retention of
key clients; the successful resolution of ongoing audits by tax
authorities; the continued employment of key personnel; the absence
of U.S. or foreign governmental regulation restricting
international business; and the sustainability of historical levels
of profitability and growth rates in cash flow generation.
Contact:
Rachel R. Stern
FactSet Research Systems Inc.
203.810.1000
FactSet Research Systems (NYSE:FDS)
Historical Stock Chart
From Feb 2024 to Mar 2024
FactSet Research Systems (NYSE:FDS)
Historical Stock Chart
From Mar 2023 to Mar 2024