FactSet Completes Acquisition of Portware, Execution Management System (EMS) Provider, and Updates First Quarter Fiscal 2016 ...
October 16 2015 - 1:11PM
FactSet Research Systems Inc. (NYSE:FDS) (NASDAQ:FDS), a leading
provider of integrated financial information and analytical
applications to the global investment community, today announced
that following regulatory approval, it has completed its
acquisition of all the issued and outstanding membership interests
of Portware, LLC. FactSet funded the acquisition by borrowing $265
million under its existing revolving credit facility today.
Portware Acquisition
First announced on September 22, 2015, the transaction enables
FactSet to support client workflows in additional segments of the
investment process. Portware is an award-winning, multi-asset
execution management system (EMS) that is trusted by the world's
largest asset managers. Together, FactSet and Portware expect to
provide the investment community with state-of-the-art analytic and
execution applications across more of the portfolio lifecycle, from
analyst to portfolio manager to trader.
"We are excited to bring Portware into the FactSet family and we
are confident that our clients will benefit from the proven
innovation and talented leadership behind our combined efforts,"
said Phil Snow, CEO of FactSet.
Alfred Eskandar, CEO of Portware, added, "We are thrilled
to provide FactSet's clients with our multi-asset EMS that will
deliver smart automation and streamlined workflows to address their
global trading needs."
The world's top-performing financial professionals rely on
FactSet's financial research, insights, and analytics. Portware
embeds its solutions into each client's trading ecosystem,
emphasizing the automation of simpler trade executions and enabling
traders to focus on adding more value to their most complex
trades. FactSet and Portware plan to provide more powerful
tools and services to align a firm's portfolio strategy more
closely with its trade execution.
Updated Business Outlook for the First Quarter of Fiscal
2016
The following forward-looking statements reflect FactSet's
expectations as of today's date. Given the number of risk factors,
uncertainties and assumptions discussed below, actual results may
differ materially. FactSet does not intend to update its
forward-looking statements until its next quarterly results
announcement, other than in publicly available statements.
First Quarter Fiscal 2016 Expectations (the expectations below
include the results from the acquisition of Portware)
- Revenues are expected to range between $270 million and $274
million.
- Operating margin is expected to range between 32.0% and
33.0%.
- The annual effective tax rate is expected to range between
31.0% and 32.0%, and assumes the U.S. Federal R&D tax credit
will not be re-enacted by the end of the first quarter of fiscal
2016.
- GAAP diluted EPS should range between $1.44 and $1.46.
Transaction fees of approximately $1 million related to the
Portware acquisition have been excluded from this GAAP diluted EPS
range.
- The lapse in the U.S. Federal R&D tax credit on December
31, 2014, reduced each end of the GAAP diluted EPS range by $0.02
compared to the recently completed fourth quarter. If the U.S.
Federal R&D tax credit is re-enacted by November 30, 2015,
diluted EPS would range between $1.49 and $1.51. FactSet would also
recognize an income tax benefit of $0.14 per share if the R&D
tax credit could be retroactively applied to previous periods.
About FactSet
FactSet, a leading provider of financial information and
analytics, helps the world's best investment professionals
outperform. More than 62,000 users stay ahead of global market
trends, access extensive company and industry intelligence, and
monitor performance with FactSet's desktop analytics, mobile
applications, and comprehensive data feeds. The Company has been
included in FORTUNE's Top 100 Best Companies to Work For,
the United Kingdom's Great Places to Work
and France's Best Workplaces. FactSet is listed on
the New York Stock Exchange and NASDAQ (NYSE:FDS)
(NASDAQ:FDS). Learn more at www.factset.com, and follow us on
Twitter: www.twitter.com/factset.
About Portware
Founded in 2000, Portware, LLC is the financial industry's
leading developer of broker-neutral, automated trading solutions
for global equities, futures, options and FX. With offices in New
York, London, Hong Kong, and Hyderabad, Portware works in
partnership with its clients to create highly integrated solutions
to streamline workflow and increase operational efficiencies on
trading desks worldwide. Portware's flagship product, Portware
Enterprise, is a fully customizable trade management and execution
system for single stock, portfolio, basket, automated and
algorithmic trading. For more information, please
visit www.portware.com.
Forward-looking Statements
This news release contains forward-looking statements based on
management's current expectations, estimates and projections. All
statements that address expectations or projections about the
future, including statements about the Company's strategy for
growth, product development, market position, subscriptions,
expected expenditures and financial results are forward-looking
statements. Forward-looking statements may be identified by words
like "expects," "anticipates," "plans," "intends," "projects,"
"should," "indicates," "continues," "subscriptions" and similar
expressions. These statements are not guarantees of future
performance and involve a number of risks, uncertainties and
assumptions. Many factors, including those discussed more fully
elsewhere in this release and in FactSet's filings with
the Securities and Exchange Commission, particularly its
latest annual report on Form 10-K and quarterly reports on Form
10-Q, as well as others, could cause results to differ materially
from those stated. These factors include, but are not limited to:
the current status of the global economy; the ability to integrate
newly acquired companies and businesses; the stability of global
securities markets; the ability to hire qualified personnel; the
maintenance of the Company's leading technological position; the
impact of global market trends on the Company's revenue growth rate
and future results of operations; the negotiation of contract terms
with corporate vendors, data suppliers and potential landlords; the
retention of key clients; the successful resolution of ongoing
audits by tax authorities; the continued employment of key
personnel; the absence of U.S. or foreign governmental regulation
restricting international business; and the sustainability of
historical levels of profitability and growth rates in cash flow
generation.
CONTACT: Rachel Stern
203.810.1000
FactSet Research Systems (NYSE:FDS)
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