FactSet Research Systems, a Connecticut-based supplier of financial data to investment companies, has acquired all of the outstanding capital stock of Derivative Solutions, a provider of analytics and portfolio management software based in Chicago.
Founded in 1991 Derivative Solutions provides fixed income analytics, portfolio management and risk management systems to financial institutions. The company's revenues for the year ended December 31 2004 were approximately $10 million.
Under the acquisition deal, FactSet paid a consideration of $42.5 million in cash and 305,748 shares of FactSet common stock.
Commenting on the acquisition, Philip Hadley, CEO, FactSet, says: "Its (Derivative Solutions) suite of products, along with its team of highly quantitative fixed income experts, will significantly enhance our portfolio analytics and security modelling capabilities and complement our current offerings for equity investment professionals."
FactSet said last week that it had entered into a definitive agreement to buy all the outstanding capital stock of StreamVPN, a UK provider of secure network services to brokerage firms.