S&P Global (NYSE: SPGI), a leading provider of transparent and independent ratings, benchmarks, analytics and data to the capital, corporate and commodity markets worldwide, announced today that it is set to acquire the RateWatch business (RateWatch) from TheStreet, Inc. (NASDAQ: TST), a B2B data business that offers subscription and custom reports on bank deposits, loans, fees and other product data to the financial services industry.
RateWatch, which was founded in 1989, was acquired by TheStreet in 2007. It will be integrated into S&P Global Market Intelligence, a division of S&P Global that provides essential intelligence for individuals, companies and governments through financial and industry data, research and news.
Under the terms of the agreement, S&P Global will acquire from TheStreet, Inc., all the assets comprising its RateWatch business for $33.5 million in cash, subject to working capital and certain other customary adjustments. The deal was simultaneously signed and closed on the same day.
"RateWatch's robust datasets complement and strengthen our core capabilities of providing differentiated data and analytics solutions for the banking sector," said Mike Chinn, President of S&P Global Market Intelligence and Executive Vice President, Data and Technology Innovation for S&P Global. "S&P Global Market Intelligence has a strong record of servicing the community bank market, and we're excited to expand our products for one of our fastest-growing market segments."
RateWatch provides clients with a robust bank deposit and loan rate database covering almost 100,000 institutions dating back about 20 years. With over 4,200 bank and credit union clients, the acquisition of RateWatch will further bolster S&P Global Market Intelligence's relationships within this key sector.
Given the transaction's size, S&P Global does not expect a material impact to its adjusted earnings per share in 2018. The return on invested capital (ROIC) is expected to exceed the Company's required rate of return after three years.
About S&P Global S&P Global is a leading provider of transparent and independent ratings, benchmarks, analytics and data to the capital and commodity markets worldwide. The Company's divisions include S&P Global Ratings, S&P Global Market Intelligence, S&P Dow Jones Indices and S&P Global Platts. S&P Global has approximately 20,000 employees in 31 countries. For more information visit www.spglobal.com.
About S&P Global Market Intelligence At S&P Global Market Intelligence, we know that not all information is important—some of it is vital. We integrate financial and industry data, research and news into tools that help track performance, generate alpha, identify investment ideas, understand competitive and industry dynamics, perform valuations and assess credit risk. Investment professionals, government agencies, corporations and universities globally can gain the intelligence essential to making business and financial decisions with conviction.
S&P Global Market Intelligence, a division of S&P Global (NYSE: SPGI), provides essential intelligence for individuals, companies and governments to make decisions with confidence. For more information, visit www.spglobal.com.
About RateWatch, Inc. RateWatch, established in 1989, is a data collection company gathering thousands of data points from nearly 100,000 financial institution locations across the United States every week. These data points are geographically packaged into reports and sold to financial institutions for competitive pricing analysis. Over 4,200 financial institutions use RateWatch reports to monitor competitors' deposit and loan rates and fees. The FDIC and the Federal Reserve also use RateWatch data for internal analysis and research.
