Interactive Data agrees to $3.4 billion sale to buyout firms Silver Lake and Warburg Pincus

Interactive Data agrees to $3.4B buyout offer

BEDFORD, Mass. — Interactive Data Corp., which provides financial information and tools to analyze it, said Tuesday it has agreed to a $3.4 billion takeover by Silver Lake and Warburg Pincus as private equity firms begin to return to leveraged buyouts.

Interactive’s biggest shareholder, U.K. publisher Pearson PLC, and its board of directors approved the deal. Pearson publishes Penguin books, the Financial Times and The Economist periodicals and education materials.

Interactive Data had been exploring strategic options, including a potential sale.

Interactive Data stockholders will receive $33.86 in cash for each share they own. This represents an approximately 33 percent premium over its Jan. 14 stock price, the last trading day before it decided to explore options. It is also a 3 percent premium over Interactive’s Monday closing stock price of $32.99.

The deal is a potential windfall for former CEO Stuart Clark, who retired in March 2009. He has more than 228,000 Interactive Data shares and options to buy 375,000 more, according to an April securities filing. Together, that could bring him more than $20 million if the deal goes through as planned.

The acquisition is also a positive sign for private equity deals, which stalled after the financial crisis froze credit markets. With economic conditions and credit markets improving, private equity firms have re-entered the fray. Recent leveraged buyouts include Apollo Global Management’s acquisition of CKE Restaurants Inc., the owner of fast food chains Carl’s Jr. and Hardee’s.

The Interactive Data deal will be funded with a combination of equity invested by Silver Lake and Warburg Pincus and debt financing provided by Bank of America Merrill Lynch, Barclays Bank PLC, Credit Suisse Securities (USA) LLC and UBS Investment Bank.

The acquisition is expected to close before the end of the third quarter. The company said it will remain headquartered in Bedford, Mass., and will keep its senior management team in place.

Interactive Data postponed its annual shareholders meeting, initially scheduled for May 25, until further notice.