Reuters to Acquire Multex

Global information group Reuters has entered into a definitive agreement to acquire financial information provider Multex for $7.35 (GBP 4.56) per share in cash.

Based in New York, Multex offers comprehensive financial information on over 25,000 active companies worldwide and earnings estimate data on over 16,000 companies in 60 countries. It reported 2002 revenue of $92.4 million (GBP 57.4 million), EBITDA of $11.5 million (GBP 7.1 million) and a net loss of $7.4 million (GBP 4.6 million), in accordance with US GAAP. The acquisition covers net assets with a book value at 31 December 2002 of $109.0 million (GBP 68.0 million), including $50.6 million (GBP 31.0 million) of cash.

The acquisition agreement has already been approved by the boards of directors of both companies and is subject to customary conditions, including standard regulatory approvals. Subject to satisfaction of its conditions, the tender offer is expected to be completed by the end of March. Following the subsequent merger, Multex will become a wholly-owned subsidiary of Reuters.

Multex possesses significant content assets, access to the research community and market experience that are expected to bring substantial benefits to Reuters and its customers. It will strengthen Reuters' financial information products with the addition of deeper global company information and estimates as well as global research content. Reuters will combine these assets with its own to offer the producers and consumers of investment research innovative, cost-effective solutions. Outside of the professional financial markets, Reuters will use these assets to create segmented online financial news, data and research products for retail consumers as well as corporate and media customers.

Tom Glocer, Reuters Group Chief Executive, said: 'Multex will play an important part in 'Fast Forward,' our drive to become a more competitive, focused and profitable information company. We know this company well. It offers compelling information and products that are valued by financial professionals and consumers alike. At a time of structural change in the financial markets, its investment research assets and relationships are particularly attractive.'

Under UK GAAP, Reuters expects the acquisition to reduce normalised profit before tax by approximately GBP 10.0 million ($16.0 million) in 2003 as a result of integration and financing costs. The acquisition is expected to have a positive impact thereafter.

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.