Online content provider ScreamingMedia said that it will buy Stockpoint Inc. for $21.6 million to bolster its financial service offerings.
ScreamingMedia said that by acquiring Stockpoint, a supplier of financial services software, it will offer a bundled software package of financial services applications, content and technology.
Under terms of the deal, ScreamingMedia will acquire all outstanding shares of Stockpoint's stock in exchange for 4.1 million shares of ScreamingMedia stock. ScreamingMedia plans to pay off $6 million of Stockpoint's debt and repay $5.9 million of Stockpoint's bonds once the acquisition closes in August. ScreamingMedia also said it will issue 350,000 warrants and pay $1.1 million in cash.
“This deal enables ScreamingMedia to make a tremendous advance in one of the most important corporate verticals in the world — finance,” said Kevin Clark, ScreamingMedia's chairman/CEO. “This acquisition fits perfectly into our strategy of offering leading content solutions in information-intensive verticals like financial services.”
Stockpoint, San Francisco, offers customized stock quote services, interactive charts for stocks and mutual funds, portfolio tracking services, market commentary and analysis.
ScreamingMedia, New York, aggregates online content and supplies it to Web sites and portals. The company offers news, features, photos, video, stock quotes, audio and weather reports.
