Fifteen-year-old Interactive Data Corp, a financial data provider owned by private equity firms Silver Lake Group and Warburg Pincus, is up for potential sale or an initial public offering that could value it at more than $5 billion (including debt), Reuters reports. IDC was taken private in 2010 by Silver Lake and Warburg Pincus for $3.4 billion.
According to the Financial Times, IDC had a total outstanding debt of $2.2 billion and cash of $320 million at the end of last year.
IDC had adjusted earnings before interest, taxes, depreciation and amortization in 2014 of $362.4 million, up from $351.6 million a year earlier, according to Reuters.
Credit Suisse and Goldman Sachs would run the auction. Should the auction results be disappointing, Morgan Stanley and Barclays would run an IPO.
The sources asked Reuters not to be identified because the matter is not public; IDC declined to comment.
Interactive Data works with clients to integrate its market data services into time-sensitive operational workflows and help them address business challenges.
According to a press release published in February 2015, “Interactive Data’s fourth quarter 2014 revenue was $239.3 million, a 3.1 percent increase from $232.2 million in the fourth quarter of 2013. Excluding the impact of changes in foreign exchange rates, Interactive Data’s organic (non-GAAP) revenue for the fourth quarter of 2014 grew by 4.3 percent from the same quarter last year.”
IDC's competitors include Bloomberg LP, Thomson Reuters Corp and FactSet. Its customers include 48 of the top 50 U.S. banks, 49 of the top 50 global asset managers and all of the top 50 U.S. mutual funds, Reuters reports.
Meanwhile, Google Payments is handling users’ financial data, ranging across apps including Android Pay and Google Wallet, VentureBeat reported on June 26. The platform will now be the service tied to Google’s backend that will support all company payments products, reported VentureBeat, as Android Pay serves in-app and in-store transactions, while Google Wallet remains geared toward peer-to-peer activity.
Financial Times reports that global spending on financial data, analysis or news increased 4 percent to $26.5 billion last year, according to Burton-Taylor, a consultancy.