Interactive Data Corporation has entered into a definitive agreement to be acquired by investment funds managed by Silver Lake and Warburg Pincus in a transaction with a total value of $3.4 billion (£2.2 billion).  

The agreement was unanimously approved by the Interactive Data board of directors, taking into consideration the recommendation of the special committee composed solely of the company's four independent directors. In addition Pearson, Interactive Data's majority stockholder, has formally approved the transaction.  

Under the agreement, Interactive Data's stockholders will receive $33.86 (£22.31) in cash for each share of Interactive Data common stock they own. This represents a premium of approximately 32.9 per cent over the closing share price on Thursday, January 14, 2010, the last trading day before the company announced that its board of directors was conducting a review of strategic alternatives. Completion of the transaction is expected to occur by the end of the third quarter of 2010, following regulatory approvals and other customary closing conditions.

Rona Fairhead, chairman of Interactive Data's board of directors, said: "This transaction enables Interactive Data's shareholders to realize substantial value and provides the company with partners who are committed to supporting its global expansion. Interactive Data has an outstanding team of more than 2,400 people and the Board thanks them sincerely for their skill and commitment in serving our customers and building the Company over many years. With the support of Silver Lake and Warburg Pincus, I am confident that Interactive Data will take full advantage of its strong market position and the changes in technology and regulations that are shaping its industry."

Following the completion of the transaction, Interactive Data will remain headquartered in Bedford in the US and will maintain its offices around the world. The company will continue to be led by its senior management team and expects to continue expanding its workforce over time.

As Interactive Data's majority stockholder, Pearson has executed a written consent to approve the transaction, thereby providing the required stockholder approval for this transaction. No further action by non-Pearson stockholders is required to approve this transaction. Please refer to the "Additional Information and Where to Find It" section below for further details about relevant information about this transaction that will be made available to all investors and stockholders.  

The transaction has fully committed financing, consisting of a combination of equity to be invested by Silver Lake and Warburg Pincus and debt financing to be provided by Bank of America Merrill Lynch, Barclays Bank PLC, Credit Suisse Securities and UBS Investment Bank. Silver Lake and Warburg Pincus are equal equity partners in this transaction.