| Background |
| Doug Wheeler leveraged his background as a portfolio manager to found Derivative Solutions. In a few years the company had become one of the leading providers of fixed-income analytics, portfolio-management and risk- management solutions to financial institutions. The company was growing rapidly and quite profitable. The next step was to take the Company international and expand the product line. However, the complexity and time involved with these activities along with the requirement to build more infrastructure held little appeal for him. Doug’s preference was to see if there were a strategic partner that would value the Company he had built, and provide for a larger role for him and his team. He engaged M&A to provide strategic and financial advice. |
| Overiew of Transaction |
- On August 2, 2005, Derivative Solutions, Inc was acquired by FactSet Research Systems, Inc. (NYSE: FDS) a leading provider of global financial and economic information. The purchase price was approximately $53 million, consisting of $42.5 million in cash and approximately $10.5 million in stock. This represented approximately 5.3 times Derivative Solutions revenue for 2004.
- The transaction has allowed Derivative Solutions team to expand their product line and to expand internationally, while at the same time relieving Doug Wheeler of some of the administrative burdens that come with being CEO of an independent Company. It also provided significant liquidity to the founders. Doug and his team now have broad fixed-income related responsibilities within FactSet. The acquisition also broadened FactSet’s capabilities in the area of analysis of fixed-income securities.
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| M&A Role |
- M&A was the exclusive strategic and financial advisor to Derivative Solutions.
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Press Release |
