Information Today
Volume 17, Issue 11 • December 2000
EDGAR Online, Inc. to Acquire Financial Insight Systems

EDGAR Online, Inc., an Internet-based provider of business, financial, and competitive information derived from U.S. Securities and Exchange Commission EDGAR filings, announced that it has entered into a definitive agreement to acquire Financial Insight Systems (FIS), a privately held company that sells EDGAR-derived data and information systems to large financial institutions. The acquisition will significantly enhance EDGAR Online’s position as a leading, full-service, financial information provider. The combined company is expected to have an immediate revenue run-rate in excess of $20 million per year upon completion of the transaction, doubling the current revenues of EDGAR Online and moving the company toward profitability, according to the announcement.

Under the terms of the stock purchase agreement, EDGAR Online will buy all the outstanding shares of FIS for $11.8 million in cash; 2.45 million shares of newly issued EDGAR Online stock; and a $6 million, 2-year 7.5-percent note, for a total transaction value of $28 million. The transaction has been recommended by the board of directors of each company and was expected to close by mid-November. EDGAR Online shareholder approval is not required.

According to the announcement, highlights of the transaction include the following:

“Our two companies couldn’t be better suited,” said Susan Strausberg, CEO of EDGAR Online. “We have built a strong EDGAR Online brand name known for information services provided both on public Web sites and as customized data services sold directly to corporations. FIS has concentrated on developing the technology base needed to extract and deliver very high-quality information from EDGAR filings. It has used this superior technology to penetrate the high end of the financial information markets. Together we will have the marketing, technology, and critical mass needed to become a major player in the business information industry.”

Girod said: “This transaction clearly positions EDGAR Online as the leader in the financial information industry. The company will have a long list of blue chip clients and an unmatched array of real-time products and services. We are pleased to be partnering with such a formidable force in the industry.”

Don Bosic, senior vice president of the Interactive Group at NASDAQ, said, “NASDAQ looks forward to taking advantage of the new services that will be available to us as a result of the combination between FIS and EDGAR Online.”

While this acquisition bolsters primarily the corporate segment of its business, EDGAR Online remains committed to its Internet-based advertising and online subscriptions revenue streams, which are expected to account for approximately 25 percent of revenues next year. New products available from FIS will be added to EDGAR Online’s Web sites as a result of the transaction.

EDGAR Online’s headquarters will remain in Norwalk, Connecticut. The combined company will have approximately 120 employees with offices in Baltimore and Rockville, Maryland; Kirkland, Washington; and New York.

Source: EDGAR Online, Inc., Norwalk, CT, 800/416-6651, 203/852-5666;

Table of Contents Information Today Home Page