Financial market data provider Interactive Data Corp. (IDC), a subsidiary of Pearson Plc (PSON.L, PSO), Friday said it is currently on a preliminary review of strategic alternatives. Media reports suggested that the company approached possible buyers.
Bedford, Massachusetts-based Interactive Data in response to press reports said that there can be no assurance on the potential outcome or timing of this review process, and does not intend to make any further comment on this matter unless and until it is appropriate to do so.
British publishing company Pearson, which owns about 61% stake of IDC said that Interactive Data has approached potential buyers to acquire the company. Financial Times, which is also owned by Pearson, reported that Interactive Data would fit with financial data groups such as Bloomberg, McGraw-Hill and Thomson Reuters, although a sale to a rival might face competition hurdle.
For the third quarter, Interactive Data posted net income attributable to the company of $43.13 million or $0.45 per share, up 17.5% from $36.72 million or $0.38 per share in the third quarter of 2008. Third quarter revenues increased 1.9% to $192.1 million from $188.6 million in the year-ago period. At that time, the company cautioned that market conditions for the balance of 2009 are expected to remain challenging and overall spending on market data and related services is being influenced by cost-containment activities, impact of recent mergers and acquisitions, and overall economic conditions.
Interactive Data has around 2,400 employees in offices located throughout North America, Europe, Asia and Australia.
In Thursday's regular trading session, IDC closed trading at $25.47 per share on the New York Stock Exchange. In the past 52-week period, shares have been trading in a range of $20.19 to $27.30.
PSON.L is currently trading at 906 pence per share, up 2.08%, on the London Stock Exchange.
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