Interactive Data Corporation (NYSE: IDC) announced that it 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. Under the agreement, Interactive Data’s stockholders will receive $33.86 in cash for each share of Interactive Data common stock they own. IDC’s controlling shareholder Pearson PLC, which holds 61% of IDC stock, will receive an approximately $2 billion payout as a result of the deal.   Source: Interactive Data

After Interactive Data Corp. announced to be acquired by investment funds an investigation was launched on behalf of current investors in Interactive Data Corp. (NYSE:IDC) concerning shareholder claims over possible breaches of fiduciary duty.   Source:

McGraw-Hill Cos. (MHP), and Hellman & Friedman LLC, both of which were earlier in the bidding for the Bedford, Mass.-based financial data provider, have withdrawn their interest in the asset, these people say.  The two firms’ withdrawal of interest comes as a second round closes in the ongoing auction of IDC, leaving three separate private equity consortia in the running, people said. Second-round bids, which follow a period of some due diligence, or access to confidential financial information, were due last week.

Pearson, which publishes the Financial Times newspaper and owns a large U.S. educational publishing business, said in January it was conducting a “preliminary review of strategic alternatives,” for IDC, in which it owns a 61% stake.   Source:  Dow Jones Newswire

BIIA Newsletter May I – 2010 Issue