NEW YORK, June 20, 2018 /PRNewswire/ -- TheStreet,
Inc. (Nasdaq: TST), a leading financial news and information
company, announced today that it has sold its RateWatch business
for $33.5 million to S&P Global
(NYSE: SPGI), a leading provider of transparent and independent
ratings and data to the capital, corporate and commodities markets
worldwide.
RateWatch, which is based in Fort
Atkinson, Wisconsin, provides more than 4,200 bank and
credit union clients with a robust deposit and loan rate database
covering 100,000 locations and dating back 20 years. RateWatch has
approximately 60 employees and 2017 revenues of approximately
$7.7 million. It was acquired by
TheStreet in 2007.
"RateWatch has been a successful, high-demand performer for our
company for many years and is moving to its new home at S&P
Global at precisely the right time in the market," said
David Callaway, President and CEO of
TheStreet, Inc. "This sale is another major step, after the
retirement of preferred stock last year, in our turnaround strategy
and our goal to enhance shareholder value through our core consumer
and institutional businesses."
S&P Global has acquired from TheStreet, Inc. all the assets
comprising its RateWatch business for $33.5
million in cash, subject to working capital adjustments. The
transaction is expected to result in proceeds of approximately
$32 million for TheStreet, Inc.,
assuming full payout of customary escrows and net of taxes and
transaction-related expenses and fees.
Jim Cramer, founder of TheStreet
and editorial director, added, "Rachelle
Zorn, the President of RateWatch, is a superb leader and has
been an inspiration to all of us and we wish her and her colleagues
all the best in their new home."
Lake Street Capital Markets, LLC acted as exclusive financial
advisor to TheStreet on this transaction.
About TheStreet, Inc.
TheStreet, Inc. (NASDAQ: TST, www.t.st) is a leading financial
news and information provider to investors and institutions
worldwide. The Company's flagship brand, TheStreet
(www.thestreet.com), has produced unbiased business news and market
analysis for individual investors for more than 20 years. The
Company's portfolio of institutional brands includes The Deal
(www.thedeal.com), which provides actionable, intraday coverage of
mergers, acquisitions and all other changes in corporate control
and BoardEx (www.boardex.com), a relationship mapping service of
corporate directors and officers.
Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements as that
term is defined in the Private Securities Litigation Reform Act of
1995. These forward-looking statements include statements
regarding planned investments in our business and expectations for
2018. Such forward-looking statements are subject to risks
and uncertainties, including those described in the Company's
filings with the Securities and Exchange Commission ("SEC") that
could cause actual results to differ materially from those
reflected in the forward-looking statements. Factors that
might contribute to such differences include, among others,
economic downturns and the general state of the economy, including
the financial markets and mergers and acquisitions environment; our
ability to drive revenue, and increase or retain current
subscription revenue, particularly in light of the investments in
our expanded news operations; our ability to develop new products;
competition and other factors set forth in our filings with the
SEC, which are available on the SEC's website at www.sec.gov.
All forward-looking statements contained herein are made as of the
date of this press release. Although the Company believes
that the expectations reflected in the forward-looking statements
are reasonable, the Company cannot guarantee future results or
occurrences. The Company disclaims any obligation to update
these forward-looking statements, whether as a result of new
information, future developments or otherwise.
Contact: Eric Lundberg, Chief
Financial Officer, TheStreet, Inc., ir at thestreet.com, or
John Evans, Investor Relations, PIR
Communications, 415-309-0230, ir at thestreet.com
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SOURCE TheStreet, Inc.