FactSet Research Systems Inc., a supplier of computer-based financial and economic data to the investment community, 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.
“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.”