Group Co.
S&P Global to Acquire RateWatch
Traders Magazine Online News, June 28, 2018
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 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 The Street 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 last week.
“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.
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