IDC to buy FutureSource for $18 million

Illinois-based FutureSource will be integrated into IDC's eSignal division under the leadership of eSignal president Chuck Thompson. The acquisition will close by September 1, officials told RiskNews’ sister publication Inside Market Data

. FutureSource will operate as a separate group within eSignal. But eSignal will combine business activities where it makes sense, Thompson said, such as in engineering.

eSignal will continue to develop FutureSource products and plans integrate its own content into the products. For instance, FutureSource's Workstation will include IDC's global equities data in its next release.

In addition, FutureSource’s branding will be retained for the time being.

Thompson said IDC decided to buy FutureSource because of growth in eSignal's futures and options business over the past few years. "FutureSource has experience and depth in the futures data area that eSignal does not have," he said. Overall, Thompson expects the expanded resources – both in data and manpower – to enable the company to reach a new client base, such as traders that need more than just futures data.

FutureSource, which targets banks, brokers and investment managers, has 6,500 terminals installed at 5,000 clients globally. eSignal sells to the same audience as well as to hedge fund managers. It has 35,000 direct terminals deployed globally to an undisclosed number of users.

FutureSource has about 135 employees, while eSignal employs approximately 190 people. Thompson says no layoffs are planned for the short term. But the company may also consolidate some offices. FutureSource could not comment by press time.

FutureSource generated revenues of approximately $20.2 million in 2003, with cost of services and selling, general and administrative expenses totalling about $18.1 million.

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• Topics
• eSignal
• FutureSource
• Technology
• Technology